AI Data Insight
In Q2 2026, the latest US ISM Services Employment Index dropped to 47.9, a slight decrease from the previous reading of 48.0, falling below the expansion/contraction line for the third consecutive month. Although the overall Services PMI and new orders expanded strongly, the labor market recovery remains sluggish due to companies leaving vacancies unfilled and productivity improvements. Meanwhile, services inflation hit a new high, adding to the Federal Reserve's monetary policy challenges.