ISM services rundown/What stocks do from here is really important for overall economy

The July ISM services index rose to 51.4 from 48.8 (which was the weakest since 2009 not including Covid) and that was just above the estimate of 51. After dropping by 7 pts last month, new orders rebounded by 5.1 pts to 52.4. Backlogs dropped almost 7 pts last month and bounced by 6.6 pts to 50.6. Inventories mostly reversed the June drop and finished July at 49.8. Employment rose 5 pts to back above 50 at 51.1 after 5 months below. Supplier deliveries fell back below 50 while prices paid rose a touch, by .7 pts to 57 and is in line with the 6 month average.

Specifically on employment, “Have many open requisitions to fill and personnel to train for the fall and 2025 ramp up” and “Higher productivity instead of replacing turnover.”

On inventories, “Intentionally working down inventory.”

With new orders, “Many projects in our queue” and “Additional data center projects are coming out for bid.”

In terms of breadth, 10 of 18 industries saw growth vs 8 in June and 13 in May. Eight industries saw a contraction, the same amount seen in June and the balance saw no change.