ISM Services PMI 54.1% in July — Business Activity Jumps but Employment Falls Back Into Contraction

The ISM Services PMI came in at 54.1% for July, its 25th consecutive month of expansion but slightly below the 54.5% consensus forecast. The Business Activity Index jumped 3.7 points to 59.1% and New Orders rose 2.1 points to 57.2%, but the services Employment Index fell back into contraction territory, an early crack in the labor market ahead of the following Friday's weak nonfarm payrolls report.