Data released Monday on the U.S. services sector surprised economists by showing stronger-than-expected growth in July, with new orders rising and employers increasing their hiring.
The Institute of Supply Management (ISM) services sector Purchasing Managers’ Index (PMI) for July came in at 51.4%, above the 50.9% that economists surveyed by the Wall Street Journal and Dow Jones Newswires had projected. The index bounced back from last month’s decline, when the index came in at 48.%. A reading above 50% indicates expansion of the services sector.
The monthly survey showed that employers expanded hiring for just the second time in 2024, while new orders also moved higher in July. Coming after last week’s jobs report, which showed that hiring slowed in July, economists said the latest reading of the ISM services index demonstrates that the economy still has some strength.
“At a moment when global financial markets are selling off over concerns that the U.S. economy could …