The ISM Non-Manufacturing Index for July checked in at 52.7% (consensus 53.0%) versus 53.9% in June. The dividing line between expansion and contraction is 50.0%. The deceleration in July suggests activity in the services sector lost some steam versus the prior month.
The key takeaway from the report is that services sector activity continued to expand in July, but at a slower pace than the prior month. Even so, the report said that the majority of respondents remain cautiously optimistic about business conditions and the economy.