10:10 AM EDT, 08/05/2026 (MT Newswires) -- The Institute for Supply Management's US services index rose to a reading of 54.1 in July from 54.0 in June, compared with expectations for a larger increase to a reading of 54.5 in a survey compiled by Bloomberg.

The ISM's reading suggests faster expansion which is in line with other regional Federal Reserve bank measures and the S&P Global measure that indicated expansion. The Richmond Fed reading suggested contraction in the month.

There were increases in the readings for business activity and production, new orders, inventories and prices, but the reading for employment declined.

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.