US service sector growth held steady in July 2026, with the Institute for Supply Management reporting that the ISM services index rose marginally by 0.1 point to 54.1, remaining above the 50‑point threshold that signals expansion. New orders increased at a faster pace and business activity climbed to its highest level in five months, indicating that consumer demand stayed robust. The prices‑paid index surged to 70.3, reflecting higher oil and gasoline prices after the breakdown of a temporary agreement between the United States and Iran. The employment gauge recorded the steepest decline in workforce numbers since March, suggesting that some firms are postponing hiring as elevated costs pressure profit margins and consumer spending. Thirteen service industries, including retail trade, transportation and warehousing, and construction, reported growth, while four sectors contracted during the month. Order backlogs showed only minimal growth, whereas both import and export measures rose to their highest readings since April. The government’s employment report for July is slated for release on Friday, with economists forecasting an increase of approximately 80,000 non‑farm payroll positions.