The report highlights a robust expansion in business activity and new orders, which climbed to 61.7 and 60.9 percent respectively. Despite this broad growth, the underlying data reveals persistent inflationary pressure. The Prices Index hit 72.6 percent, marking its fifth time above the 70 percent threshold in six months and reaching its highest 12-month average since April 2023.

Steve Miller, chair of the ISM Services Business Survey Committee, noted that supply chain volatility remains a primary concern for respondents, with tariffs and Middle East tensions frequently cited as disruptive factors. While 12 industries reported growth, the employment landscape remains strained; the Employment Index contracted for the second consecutive month at 47.8 percent, though the share of companies actively cutting staff levels dipped slightly to 17.1 percent.