10:09 AM EDT, 09/04/2025 (MT Newswires) -- The Institute for Supply Management's US services index rose to a reading of 52.0 in August from 50.1 in July, compared with expectations for a smaller gain to a reading of 51.0 in a survey compiled by Bloomberg as of 7:30 am ET.

The ISM's reading indicates expansion, which is in line with the Richmond Fed, Kansas City, Dallas Fed and the S&P Global readings but in contrast with the other regional services data that suggest that sector contracted.

There were gains in the readings for production, new orders and employment, but declines in the readings for prices and order backlogs.

The monthly national services reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US services sector and would be a positive for service-sector stocks. Rising prices would normally be a negative for both stocks and bonds.