US services activity edges up in July, ISM says

US services-sector activity rose slightly in July, with the Institute for Supply Management's services index up 0.1 percentage point to 54.1 percent, ISM said Wednesday.

ISM said new orders and business activity increased during the month, while its employment index returned to contraction.

ISM survey chair Steve Miller said tariff impacts and the Middle East conflict continued to be mentioned by respondents, but less often than in earlier reports. He said the World Cup also helped lift business activity and new orders, and said the US services economy remained resilient.

Miller also said concerns remained over mortgage rates, inflation rates and pricing effects from higher petroleum costs.

One construction-sector respondent said sales were continuing to fall despite increased discounts and cited cost pressures. A public-administration respondent said uncertainty over the Iran conflict's effect on oil prices could affect construction and other materials, including capital projects.