US services activity remains strong in July as input costs rise, sending mixed signals for crypto markets

The US services sector posted its 25th consecutive month of expansion in July. But under the hood, the picture is messier than the headline number suggests, with input costs climbing and employment slipping into contraction territory.

The ISM Services PMI came in at 54.1% for July, a hair above June’s 54.0% reading but below the 54.5% that economists had penciled in. Any reading above 50 signals expansion, and the services sector has now stayed in growth territory for over two years straight.

Strong activity, rising prices, fewer workers

The Business Activity Index jumped to 59.1%, climbing 3.7 points from the prior month.

New Orders rose to 57.2%, up 2.1 points from June.