US ISM services PMI rises to 55.4 as new orders hit two-year high
The ISM Services PMI rose to 55.4 in August, driven by a jump in new orders to their highest since February 2023, while prices paid hit a July 2022 high.
The Institute for Supply Management’s services PMI rose 1.3 points to 55.4 in August, the second-highest reading since October 2024. Twelve industries reported growth, including mining, real estate, and accommodation and food services, while five industries contracted.
New orders drove the increase, jumping 3.7 points to 60.9 — the highest level since February 2023 and well above the 56.6 average since 1997.
Price pressures also strengthened: the prices paid component added 2.3 points to 72.6, the highest since July 2022. At the same time, the employment index remained in contraction at 47.8 for a second consecutive month and in five of the last six months.
The report shows the services sector expanding, but with building inflationary pressure.
Source: The Kobeissi Letter