AI Data Insight
The latest US ISM Services Employment Index for Q3 2026 (2026-07-01) slipped to 47.4, a significant decline from the previous reading of 51.2 in Q2 2026 (2026-06-01), returning to contraction territory. Although overall service sector activity continued to expand benefiting from new order growth, high input costs continue to exert pressure on the job market. As companies accelerate AI adoption and control costs, cooling labor demand may pose hidden risks for upcoming employment data.