2025.09.0414:05:31UTC+00US ISM Services PMI Tops Estimates

In August 2025, the ISM Services PMI increased to 52, up from 50.1 in July, surpassing expectations of 51. This marks the highest expansion in the services sector over the past six months. The upward movement was mainly prompted by accelerated growth in business activity (rising from 52.6 to 55), new orders (moving from 50.3 to 56), and inventories (increasing from 51.8 to 53.2). However, these positive developments were tempered by persistent declines in employment (slightly decreasing from 46.4 to 46.5), a significant 16-year low for the backlog of orders (dropping from 44.3 to 40.4), and high price levels (slightly easing from 69.9 to 69.2). Steve Miller, Chair of the ISM Services Business Survey Committee, noted that feedback once again predominantly highlighted the repercussions of tariffs. He pointed out that there are signs of business activity and imports being driven by efforts to pre-empt further price hikes ahead of the holiday peak season.