U.S. ISM Services PMI Rises to 55.4 in August, Marking Six-Month High as Activity and Orders Accelerate

The Institute for Supply Management (ISM) reported that its U.S. services PMI climbed to 55.4 in August from 54.1 in July, beating consensus forecasts and registering the strongest expansion in the services sector in six months.
Growth was driven by accelerated business activity (61.7 vs. 59.1) and new orders (60.9 vs. 57.2). However, underlying survey details showed structural pressures persisting: the prices-paid index jumped to a four-year high of 72.6 due to rising petroleum, diesel, and gasoline costs, while employment contracted for the second consecutive month (47.8). Respondents heavily cited Middle East supply chain strains and tariffs as key headwinds.