US Services Sector Expands Marginally in July, Missing Forecasts Amid Hiring Concerns
| Pair | Now | Since publish |
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| EURUSD | — | — |
| GBPUSD | — | — |
| USDJPY | — | — |
- US services PMI rose to 54.1 in July, missing forecasts.
- Sector expansion driven by new orders and events like July 4th.
- Persistent hiring weakness raises concerns for Fed rate hike expectations.
The U.S. services sector continued to expand in July, with the Institute for Supply Management (ISM) Services Purchasing Managers’ Index (PMI) rising marginally to 54.1 from 54.0 in June. This growth, driven by an uptick in new orders and business activity, including boosts from July 4th celebrations and the World Cup, indicates ongoing resilience in demand. However, the reported figure fell short of economists’ consensus expectation of 54.5. Despite the overall robust activity, the report also highlighted persistent weakness in hiring, suggesting a lack of appetite for increasing workforce numbers. This subdued hiring outlook could potentially temper expectations for future Federal Reserve interest rate adjustments, particularly ahead of upcoming jobs data.