{"id":7046,"date":"2025-08-05T14:47:24","date_gmt":"2025-08-05T14:47:24","guid":{"rendered":"https:\/\/otetmarkets.com\/blog\/?p=7046"},"modified":"2025-08-05T14:47:25","modified_gmt":"2025-08-05T14:47:25","slug":"us-services-pmi-july-2025","status":"publish","type":"post","link":"https:\/\/otetmarkets.com\/blog\/news\/us-services-pmi-july-2025\/","title":{"rendered":"U.S. Services Sector Stalls in July as ISM PMI Falls Amid Tariff Pressures"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaways\"><strong>Key Takeaways \u2705<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>U.S. services PMI<\/strong> fell to <strong>50.1<\/strong> in July from <strong>50.8<\/strong>, missing expectations of 51.5<\/li>\n\n\n\n<li>Business activity, new orders, and employment all slowed<\/li>\n\n\n\n<li><strong>Tariff impacts<\/strong> were the most cited concern among businesses<\/li>\n\n\n\n<li>Input prices surged to the highest level since October 2022<\/li>\n\n\n\n<li>Imports and exports both shifted from expansion to contraction<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-video\">\n  <a href=\"https:\/\/otetmarkets.com\/prblog\" target=\"_blank\">\n    <video height=\"500\" style=\"aspect-ratio: 1312 \/ 500;\" width=\"1312\" autoplay loop muted playsinline>\n      <source src=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/04\/Otet-Banner-en-2.mp4\" type=\"video\/mp4\">\n      Your browser does not support the video tag.\n    <\/video>\n  <\/a>\n<\/figure>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-u-s-services-pmi-nears-stagnation-in-july-2025\"><br><strong>U.S. Services PMI Nears Stagnation in July 2025<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"482\" src=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/08\/Copy-of-slider-photo-2-1024x482.webp\" alt=\"us services pmi july 2025\" class=\"wp-image-7049\" srcset=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/08\/Copy-of-slider-photo-2-1024x482.webp 1024w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/08\/Copy-of-slider-photo-2-300x141.webp 300w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/08\/Copy-of-slider-photo-2-768x361.webp 768w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/08\/Copy-of-slider-photo-2.webp 1312w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The <strong>U.S. services PMI<\/strong> slipped to <strong>50.1<\/strong> in July 2025, down from <strong>50.8<\/strong> in June, and well below market forecasts of 51.5, according to the latest ISM data. This reading, just above the 50 threshold that separates growth from contraction, marks the weakest performance in the U.S. services sector since early this year.<\/p>\n\n\n\n<p>Seasonal and weather-related factors contributed to the downturn, but businesses mainly pointed to <strong>rising tariff pressures<\/strong>, especially in commodities, as a growing concern. The PMI\u2019s decline highlights the impact of ongoing global trade uncertainty on American service industries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-subcomponents-show-broad-based-weakness\"><br><strong>Subcomponents Show Broad-Based Weakness<\/strong><\/h3>\n\n\n\n<p>The details of the report suggest a widespread slowdown across the sector:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business activity\/production<\/strong> fell to 52.6 from 54.2<\/li>\n\n\n\n<li><strong>New orders<\/strong> eased to 50.3 from 51.3<\/li>\n\n\n\n<li><strong>Inventories<\/strong> dipped to 51.8 from 52.7<\/li>\n<\/ul>\n\n\n\n<p>At the same time, <strong>employment<\/strong> dropped to <strong>46.4<\/strong>, its second straight month in contraction territory and the fourth time in five months. Export and import orders also reversed course, falling into contraction, further signaling how <strong>tariff tensions<\/strong> are starting to hit global trade flows.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Read More: <a href=\"https:\/\/otetmarkets.com\/blog\/news\/us-jobs-report-in-june\/\" target=\"_blank\" rel=\"noreferrer noopener\">US Jobs Report in June Beats Expectations<\/a><\/strong><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-rising-costs-add-pressure\"><br><strong>Rising Costs Add Pressure <\/strong><\/h2>\n\n\n\n<p>On the inflation front, the <strong>prices index<\/strong> jumped to <strong>69.9<\/strong>, the highest reading since October 2022. Panelists noted that cost increases were driven by fuel, labor, and raw materials\u2014many of which are subject to new or increased import tariffs.<\/p>\n\n\n\n<p>Backlogs continued to decline, pointing to a slowing pipeline of future business. Supplier delivery times worsened, suggesting continued strain on supply chains.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ism-services-pmi-data-table\"><br><strong>ISM Services PMI Data Table<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Indicator<\/th><th>July 2025<\/th><th>June 2025<\/th><th>Forecast<\/th><\/tr><\/thead><tbody><tr><td>ISM Services PMI<\/td><td>50.1<\/td><td>50.8<\/td><td>51.5<\/td><\/tr><tr><td>Business Activity<\/td><td>52.6<\/td><td>54.2<\/td><td>\u2013<\/td><\/tr><tr><td>New Orders<\/td><td>50.3<\/td><td>51.3<\/td><td>\u2013<\/td><\/tr><tr><td>Employment<\/td><td>46.4<\/td><td>47.2<\/td><td>\u2013<\/td><\/tr><tr><td>Prices Paid<\/td><td>69.9<\/td><td>67.5<\/td><td>\u2013<\/td><\/tr><tr><td>New Export Orders<\/td><td>47.9<\/td><td>51.1<\/td><td>\u2013<\/td><\/tr><tr><td>Imports<\/td><td>45.9<\/td><td>51.7<\/td><td>\u2013<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-outlook-will-trade-uncertainty-derail-recovery\"><strong><br>Outlook: Will Trade Uncertainty Derail Recovery? <\/strong><\/h2>\n\n\n\n<p>While the <strong>U.S. services PMI<\/strong> remains technically in expansion territory, the July data paints a cautious picture. Businesses are increasingly worried about tariffs, particularly as tensions escalate with key trading partners. The sustained rise in input costs and weakening demand could weigh on future hiring and investment.<\/p>\n\n\n\n<p>With employment shrinking and trade flows turning negative, the services sector may struggle to maintain momentum in the second half of the year, especially if tariffs continue to rise.<\/p>\n\n\n\n<p><a href=\"https:\/\/tradingeconomics.com\/united-states\/non-manufacturing-pmi\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways \u2705 U.S. Services PMI Nears Stagnation in July 2025 The U.S. services PMI slipped to 50.1 in July 2025, down from 50.8 in June, and well below market forecasts of 51.5, according to the latest ISM data. This reading, just above the 50 threshold that separates growth from contraction, marks the weakest performance [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,2],"tags":[37],"class_list":["post-7046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-economy-news","category-news","tag-financialnews"],"_links":{"self":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/7046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=7046"}],"version-history":[{"count":2,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/7046\/revisions"}],"predecessor-version":[{"id":7051,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/7046\/revisions\/7051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media\/7047"}],"wp:attachment":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=7046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=7046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=7046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}