The ISM Services PMI unexpectedly fell to 50.1 in July 2025 from 50.8 in June, below forecasts of 51.5. The reading showed the services sector nearly stagnated, with seasonal and weather factors having a negative impact on business. A slowdown was seen for business activity/production (52.6 vs 54.2), new orders (50.3 vs 51.3) and inventories (51.8 vs 52.7). Also, price pressures intensified to the highest since October 2022 (69.9 vs 67.5), with the most common topic among survey panelists remaining tariff-related impacts, particularly in commodities. In addition, employment fell faster (46.4 vs 47.2) and remained in contraction territory for the second month in a row and the fourth time in the last five months. Backlog of orders continued to decline (44.3 vs 42.4) and supplier deliveries slowed (51 vs 50.3). Meanwhile, new exports (47.9 vs 51.1) and imports (45.9 vs 51.7) both moved from expansion to contraction, providing signals that tariff tensions are impacting global trade.