The ISM Services PMI rose to 52 in August 2025 from 50.1 in July, beating forecasts of 51. The reading pointed to the highest expansion in the services sector in six months, driven by faster growth rates for business activity (55 vs 52.6), new orders (56 vs 50.3) and inventories (53.2 vs 51.8). Offsetting these positive indicators, however, are a continued contraction in employment (46.5 vs 46.4), a 16-year low for backlog of orders (40.4 vs 44.3), and elevated prices (69.2 vs 69.9). "Commentary once again was led by respondents’ increasing citations of tariff impacts, with some indication that business activity and imports are being driven by an attempt to get ahead of additional price increases while preparing for the holiday peak season”, Steve Miller, Chair of the ISM Services Business Survey Committee said.