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Shadow AI Could Expose Sensitive Data Before Companies Know It

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As employees adopt public AI tools faster than companies can govern them, Magna5 says mid-market organizations need secure, sanctioned AI pathways before sensitive data leaves controlled environments.

PITTSBURGH, July 6, 2026 /PRNewswire/ — Employees are adopting artificial intelligence into the workplace faster than many companies can govern it, creating a new data-security blind spot for mid-market organizations. A recent survey found that nearly half of workers (49%) admitted using AI tools at work without approval, often sharing sensitive data with free versions of popular tools such as ChatGPT. Magna5, a national managed IT, cybersecurity, cloud and compliance services provider, warns that shadow AI is becoming the next version of shadow IT, but with higher stakes. Across mid-market organizations, employees may unintentionally expose contracts, client records, financial data, employee information, proprietary data, and other sensitive business information through AI tools that were never approved.

“Employees have learned that they should not store company files in their personal email or cloud storage, but many do not think twice about uploading a contract or customer information into a personal AI tool,” said Justin Cameron, Chief Technology Officer of Magna5. “AI can feel like a private conversation, but the more comfortable employees get using it every day, the easier it is to forget that public tools are storing their inputs, may be training on them, and could potentially reuse that data for other users.”

The Adoption Gap Is Becoming the Security Gap 

Employees use tools such as ChatGPT, Microsoft Copilot, and Claude to save time, improve writing, summarize information, and answer questions. In many organizations, usage has outpaced policy, training, and security controls.

That gap creates a new challenge for executives: AI adoption cannot be managed only as an innovation initiative. It must also be treated as a governance, cybersecurity, and compliance issue.

That is where AI governance must become operational, not theoretical. The National Institute of Standards and Technology’s AI Risk Management Framework urges organizations to govern, map, measure, and manage AI risk. Many mid-market companies, however, still lack the fundamentals required to do that: visibility into where AI is being used, rules for what data can be shared, controls to limit unauthorized tools, and monitoring to ensure employees follow policy.

“A policy without enforcement is simply an expectation,” Cameron said. “Organizations need to take a two-pronged approach by giving employees access to a secure, approved AI platform and maintaining visibility into whether unsanctioned tools are being used outside of it. Without both in place, companies are ultimately relying on trust rather than control.”

Blocking Alone is Not a Complete Strategy 

Some companies may respond to AI by trying to ban public tools. Magna5 cautions this approach can backfire if employees still need to use AI but are not given an easy, sanctioned alternative to adopt. Instead, Cameron recommends giving employees a “walled garden” for AI: an approved environment where workers can experiment, learn, and become more productive without relying on unmanaged models.

“Step one is offering employees a secure system and educating them on how to use it, so they adopt company-approved tools instead of personal ones,” Cameron said. “Then companies need security controls that provide visibility into AI usage, monitor what data is being submitted, and enforce clear policy.”

For healthcare organizations, the concern may involve administrative workers uploading patient records or other protected information to help with billing, documentation, or reporting. That risk comes as the industry is under pressure from rising cybersecurity incidents: HHS says reports of large breaches increased 102% from 2018 to 2023, while the number of individuals affected increased 1,002%. More than 167 million people were affected by large healthcare breaches in 2023 alone.

For Defense Industrial Base companies, the concern is that controlled unclassified information could move into unapproved AI platforms, browser-based agents, or other tools without proper access control. “Any data entered into a free or personal AI model that has not been secured and managed by the company creates exposure,” Cameron said.

Crawl Before You Run 

Magna5 recommends that companies adopt AI through a staged approach, like a “crawl, walk, run, sprint” model, to help organizations move from basic awareness to secure, business-aligned AI adoption:

Crawl: Understand the company’s current AI footprint by identifying official and unofficial usage, surveying employees, setting acceptable-use guidelines, selecting low-risk use cases, and creating a safe environment for experimentation. This stage should also include a review of data hygiene, because AI outputs are only as reliable as the information behind them. Before enriching AI with internal knowledge, organizations need to ensure their data is current, accurate, trustworthy, and not trapped in outdated records, inconsistent documentation, or siloed systems.Walk: Expand into measurable, value-driving use cases such as customer support, sales, marketing, engineering, reporting, or internal knowledge management.Run and Sprint: Move toward deeper AI integration only after governance, training, security controls, and approved use cases are in place, allowing AI to become embedded into workflows, decision support, automation, and purpose-built agents.

“AI is already inside the business, whether leadership has formally approved it or not,” Cameron said. “The question is whether companies will govern it intentionally or discover the risk after sensitive data has already left their control.”

About Magna5

Magna5 is a national managed IT, cybersecurity, cloud and compliance services provider serving small and mid-sized businesses, mid-market organizations and regulated industries across the United States. The company helps organizations manage critical IT infrastructure, protect networks and data, support users, and strengthen operational resilience through 24/7/365 monitoring, managed security, cloud, backup, disaster recovery and compliance support. Magna5 works with security- and uptime-conscious sectors including the Defense Industrial Base, healthcare, financial services, legal, manufacturing, education, construction, government and professional services. For more information, visit www.magna5.com.

Sources:

National Institute of Standards and Technology. (2023). Artificial intelligence risk management framework (AI RMF 1.0). U.S. Department of Commerce. nist.gov/itl/ai-risk-management-frameworkNational Institute of Standards and Technology. (n.d.). AI RMF playbook. U.S. Department of Commerce. nist.gov/itl/ai-risk-management-framework/ai-rmf-playbookNational Institute of Standards and Technology. (2024). Artificial intelligence risk management framework: Generative artificial intelligence profile. U.S. Department of Commerce. nist.gov/itl/ai-risk-management-frameworkU.S. Department of Health and Human Services. (n.d.). HIPAA Security Rule NPRM to strengthen the cybersecurity of electronic protected health information. hhs.gov/hipaa/for-professionals/security/hipaa-security-rule-nprm/index.htmlITPro. (2025). CISA’s interim chief uploaded sensitive documents to a public version of ChatGPT — security experts explain why you should never do that. itpro.com/security/data-protection/cisas-interim-chief-uploaded-sensitive-documents-to-a-public-version-of-chatgpt-security-experts-explain-why-you-should-never-do-that

Media Inquiries:
Karla Jo Helms
JOTO PR™
727-777-4629
Jotopr.com

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Technology

Services PMI® at 54%; June 2026 ISM® Services PMI® Report

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Business Activity Index at 55.4%; New Orders Index at 55.1%; Employment Index at 51.2%; Supplier Deliveries Index at 54.4%

TEMPE, Ariz., July 6, 2026 /PRNewswire/ — Economic activity in the services sector continued to expand in June, say the nation’s purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® registered 54 percent, the 24th consecutive month in expansion territory.

The report was issued today by Steve Miller, CPSM, CSCP, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: “In June, the Services PMI® registered 54 percent, a decrease of 0.5 percentage point compared to May’s figure of 54.5 percent. The Business Activity Index remained in expansion territory in June, decreasing 2.3 percentage points to 55.4 percent from May’s reading of 57.7 percent. The New Orders Index registered 55.1 percent, 2.2 percentage points below May’s figure of 57.3 percent. The Employment Index expanded for the first time in four months with a reading of 51.2 percent, a 3.3-percentage point increase from the 47.9 percent recorded in May. All of the four subindexes that make up the composite PMI® were above their 12-month moving averages,” says Miller.

“The Supplier Deliveries Index registered 54.4 percent, 0.8 percentage point lower than the 55.2 percent recorded in May. This is the 19th consecutive month that the index has been in expansion territory, indicating slower supplier delivery performance. (Supplier Deliveries is the only ISM® PMI® Reports index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

“The Prices Index decreased to 67.7 percent in June, 3.6 percentage points below May’s figure of 71.3 percent and its first time below 70 percent since February. The index has exceeded 60 percent for 19 straight months, maintaining its 12-month average of 68 percent. Diesel, gasoline, oil and related commodities were once again most frequently mentioned as up in price in June — and cited as down in price from other respondents. This is likely due to different contract terms for these commodities between companies.

“The Inventories Index registered 51.2 percent, down 11.3 percentage points from May’s figure of 62.5 percent. The Inventory Sentiment Index expanded for the 38th consecutive month, registering 52.6 percent, down 2.6 percentage points from May’s figure of 55.2 percent. The Backlog of Orders Index remained in expansion territory for a fifth straight month, increasing 3.6 percentage points to 54.9 percent in June from May’s reading of 51.3 percent. The New Export Orders remained at 50 percent or above for the fifth month in a row, increasing 0.4 percentage point in June, to 50.4 percent. The Imports Index dropped into contraction territory at 49.4 percent in June, a decrease of 1.7 percentage points compared to its May reading of 51.1 percent, and its third consecutive lower reading since reaching 55.2 percent in March.

“Fourteen industries reported growth in June, three less than in May, and the number reporting contraction were four, an increase of three from May. The June Services PMI® reading of 54 percent is 0.9 percentage point above the 12-month average of 53.1 percent. For the sixth straight month, that figure increased, with an uptick of 0.3 percentage point over May’s 12-month average of 52.8 percent.”

Miller continues, “The Prices Index decreased to 67.7 percent, its lowest reading since February 2026 (63 percent). In this month’s report, some respondents reported reduced prices paid for gasoline and diesel, but this was not seen across the board. Petroleum-related products were mentioned again as a commodity up in price, something that we expect to see for several months as higher oil prices work their way through the supply chain, but they should ease off in the fall assuming recent progress in moving oil through the Strait of Hormuz continues. As of late June, West Texas Intermediate crude oil dropped below US$70 per barrel for the first time since February, a more than 30 percent drop from its high in recent months. The Supplier Deliveries Index continued to indicate slower performance; while easing for its second month in a row, it is still above its 12-month average.

“The more than 2-percentage point drops in both the Business Activity and New Orders indexes were partially offset by the 3.3 percentage point increase in the Employment Index. All four subindexes of the Services PMI® are once again in expansion territory and above their 12-month averages. In a welcome sign of reduced growth rate of prices paid, June’s Prices Index reading of 67.7 percent is its lowest in four months and below its 12-month average. There were fewer commodities reported as up in price compared to previous months.

“Despite easing of the Supplier Deliveries Index, there was an increase in commodities listed as ‘in Short Supply,’ increasing from five in May to nine in June. All commodities in short supply in June are commodities necessary for data center construction, while the Utilities and Information industries all continued their more than six-month runs in expansion territory. Memory components, copper, aluminum, and heating, ventilation and air conditioning (HVAC) equipment continued multimonth runs of being listed as up in price.

“Respondents in June commented less frequently about pricing impacts on petroleum products, while tariff impacts continued to be a theme for increased pricing pressure. The Inventories Index dropped to its second-lowest level since October 2025, indicating that the buy-ahead phenomenon from earlier in the year may be over. The Imports Index dropped into contraction territory for the first time in five months, down from a spike to 55.2 percent in March, its highest level in over two years. The Backlog of Orders Index reached its second-highest level in almost four years. These readings, taken with respondent commentary, seem to indicate that supply chains are stabilizing amid sustained business activity, giving confidence to businesses that selective, yet modest, increased employment is warranted. World Cup-related hiring in the U.S. likely contributed to the increase to the Employment Index. Of the 18 services industries, nine of them — representing over 58 percent of U.S. gross domestic product (GDP) — reported higher employment levels in June. This represents widespread confidence that hiring is again warranted to support activity levels.”

INDUSTRY PERFORMANCE
The 14 services industries reporting growth in June — listed in order — are: Arts, Entertainment & Recreation; Mining; Wholesale Trade; Transportation & Warehousing; Finance & Insurance; Accommodation & Food Services; Retail Trade; Other Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; Information; Construction; Utilities; and Real Estate, Rental & Leasing. The four industries reporting a contraction in the month of June are: Agriculture, Forestry, Fishing & Hunting; Educational Services; Management of Companies & Support Services; and Public Administration.

WHAT RESPONDENTS ARE SAYING

“We continue to experience higher prices due to the Persian Gulf conflict through rising diesel fuel costs and increased input costs for resin-based packaging. The brunt of the impact will be experienced in the third quarter (Q3) of 2026, but we are feeling the impact now. Suppliers are aggressively attempting to pass through price increases.” [Accommodation & Food Services]”Extreme drought in Virginia is creating financial problems for farmers and the agricultural industry. Dramatically reduced spring crops harvest has created significant cost increases in feed expense. The barley grain crop was nearly totally lost due to the early hot weather and spring freeze. High fertilizer cost increases due to the war in Iran and increased freight cost has driven cost for crops above breakeven levels on many farms. Many dairy farmers are struggling with crop shortages, high input cost and below milk price breakeven. The financial stress from higher cost due to the Iran war and drought-related forage losses has resulted in decreased spending in the agricultural sector.” [Agriculture, Forestry, Fishing & Hunting]”In general, our company (commercial construction) is doing well. Pipeline is healthy for current and future work. Material pricing is higher and lead times on certain components in support of data center piping is elongating.” [Construction]”In addition to the known semiconductor manufacturing issue, now there are concerns regarding memory availability that is materially impacting our OEM’s purchasing patterns, which is affecting availability and driving my company’s purchasing decisions, including how much longer we are sweating our assets, how frequently we refresh, and how we approach maintenance contracts.” [Finance & Insurance]”Despite economic headwinds like persistent inflation, patient volumes and overall business activity remain strong reflected mainly by outstanding revenue performance. Supply chains remain resilient as well; back orders are at a historical low, and few if any critical products are experiencing difficulties. Labor is steady, as we continue to add full-time workers while the forecast remains positive. Given the continuation of the conflict in the Middle East, we are beginning to hear that cost of goods increases are on the horizon but have yet to materialize. Cost increases are in focus for the next quarter.” [Health Care & Social Assistance]”From a strategic supply chain perspective, we are seeing increased complexity in managing total landed cost due to tariffs, import/export constraints and duty recovery mechanisms, requiring more proactive coordination across sourcing, logistics and compliance teams. Recent discussions internally also highlight the impact of tariff programs and duty drawback evaluations on purchasing strategies.” [Mining]”Demand remains strong in infrastructure, environmental, and resilience projects, while procurement faces persistent labor inflation, supplier capacity constraints, and regulatory complexity—particularly in California and other high-cost markets. Labor-driven categories remain elevated despite easing goods inflation. The impact is higher rates, longer lead times, and increased importance of capacity assurance vs. lowest-cost sourcing.” [Professional, Scientific & Technical Services]”Business has been very strong during what is usually a less active time of the year. Pricing is stable, and employment just where we want it to be. Supply chain strong with no challenges.” [Retail Trade]”The utility industry continues to experience extended lead times, supply-chain constraints, material shortages, and pricing volatility. As a result, suppliers are often limiting quotation validity periods, with many RFQs carrying expiration dates as short as 24 hours. These conditions require timely evaluation and procurement decisions to mitigate the risk of price changes and availability issues.” [Utilities]”We are experiencing continued sequential top-line growth driven mostly by increased prices.” [Wholesale Trade]

ISM® SERVICES SURVEY RESULTS AT A GLANCE

COMPARISON OF ISM® SERVICES AND ISM® MANUFACTURING SURVEYS

JUNE 2026

Index

Services PMI®

Manufacturing PMI®

Series Index

Jun

Series Index

May

Percent
Point
Change

Direction

Rate of
Change

Trend*

(Months)

Series
Index

Jun

Series
Index

May

Percent
Point
Change

Services PMI®

54.0

54.5

-0.5

Growing

Slower

24

53.3

54.0

-0.7

Business Activity/

Production

55.4

57.7

-2.3

Growing

Slower

24

52.2

54.3

-2.1

New Orders

55.1

57.3

-2.2

Growing

Slower

13

56.0

56.8

-0.8

Employment

51.2

47.9

+3.3

Growing

From Contracting

1

49.7

48.6

+1.1

Supplier Deliveries

54.4

55.2

-0.8

Slowing

Slower

19

57.4

60.6

-3.2

Inventories

51.2

62.5

-11.3

Growing

Slower

5

51.4

49.9

+1.5

Prices

67.7

71.3

-3.6

Increasing

Slower

109

73.0

82.1

-9.1

Backlog of Orders

54.9

51.3

+3.6

Growing

Faster

5

50.5

52.2

-1.7

New Export Orders

50.4

50.0

+0.4

Growing

From Unchanged

1

48.5

50.6

-2.1

Imports

49.4

51.1

-1.7

Contracting

From Growing

1

52.9

53.0

-0.1

Inventory Sentiment

52.6

55.2

-2.6

Too High

Slower

38

N/A

N/A

N/A

Customers’ Inventories

N/A

N/A

N/A

N/A

N/A

N/A

42.3

42.7

-0.4

OVERALL ECONOMY

Growing

Slower

73

Services Sector

Growing

Slower

24

ISM® Services PMI® Report data is seasonally adjusted for the Business Activity, New Orders, Employment and Prices indexes. ISM® Manufacturing PMI® Report data is seasonally adjusted for New Orders, Production, Employment and Inventories indexes.
*Number of months moving in current direction.

COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY

Commodities Up in Price
Aluminum (4); Aluminum Products; Beef; Computers and Related Items (2); Conductor Cable; Copper (7); Diesel* (4); Electrical Components; Food Products (2); Fuel* (5); Gasoline* (5); Heating, Ventilation and Air Conditioning (HVAC) Equipment (2); House Wraps; Insurance (2); Labor (11); Labor — Consulting; Labor — Technical; Lumber; Lumber — Plywood; Memory Products (6); Oriented Strand Board (OSB); Petroleum Based Products (2); Plastics; Software — Licensing (5); Software — Maintenance/Support (3); Soybean Oil (2); Steel Products (3); and Transportation (4).

Commodities Down in Price
Diesel*; Fuel*; and Gasoline*.

Commodities in Short Supply
Computers and Related Items (2); Electronic Components (5); Labor; Memory Components (6); Software Licensing; Steel Products; Switchgear; Transformers; and Wire and Cable.

Note: The number of consecutive months the commodity is listed is indicated after each item.

*Indicates both up and down in price.

JUNE 2026 SERVICES INDEX SUMMARIES

Services PMI®
In June, the Services PMI® registered 54 percent, 0.9 percentage point above its 12-month moving average of 53.1 percent. A reading above 50 percent indicates the services sector economy is generally expanding; below 50 percent indicates it is generally contracting.

A Services PMI® above 48.1 percent, over time, generally indicates an expansion of the overall economy. Therefore, the June Services PMI® indicates the overall economy is expanding for the 73rd straight month. Miller says, “The past relationship between the Services PMI® and the overall economy indicates that the Services PMI® for June (54 percent) corresponds to a 1.9-percentage point increase in real gross domestic product (GDP) on an annualized basis.”

SERVICES PMI® HISTORY

Month

Services PMI®

Month

Services PMI®

Jun 2026

54.0

Dec 2025

53.8

May 2026

54.5

Nov 2025

52.4

Apr 2026

53.6

Oct 2025

52.0

Mar 2026

54.0

Sep 2025

50.3

Feb 2026

56.1

Aug 2025

51.9

Jan 2026

53.8

Jul 2025

50.5

Average for 12 months – 53.1

High – 56.1

Low – 50.3

Business Activity
ISM®’s Business Activity Index continued in expansion in June; the reading of 55.4 percent is 2.3 percentage points lower than the 57.7 percent recorded in May. June’s reading is 0.3 percentage point above its 12-month moving average of 55.1 percent. Comments from respondents include: “World Cup activity in the Dallas-Fort Worth (DFW) metroplex” and “Activity has been high for the past couple of years, given many electric industry new initiatives and projects.”

The 13 industries reporting an increase in business activity for the month of June — listed in order — are: Arts, Entertainment & Recreation; Retail Trade; Finance & Insurance; Transportation & Warehousing; Wholesale Trade; Mining; Other Services; Information; Accommodation & Food Services; Professional, Scientific & Technical Services; Utilities; Health Care & Social Assistance; and Real Estate, Rental & Leasing. The four industries reporting a decrease in business activity in the month of June are: Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Public Administration; and Construction.

Business Activity

%Higher

%Same

%Lower

Index

Jun 2026

24.3

61.2

14.5

55.4

May 2026

29.3

57.8

12.9

57.7

Apr 2026

28.7

60.8

10.5

55.9

Mar 2026

22.8

62.6

14.6

53.9

New Orders
ISM®’s New Orders Index remained in expansion territory at 55.1 percent in June, 2.2 percentage points lower than the reading of 57.3 percent in May. The index has expanded for 13 consecutive months. Comments from respondents include: “Slightly higher in the last month with inventory, suppliers and contractors ready for the summer rush and any possible storms that affect the area” and “Volume is unfavorable to budget; other consumer expenses going up may be causing people to defer health-care spending.”

The 12 industries reporting an increase in new orders for the month of June — listed in order — are: Mining; Arts, Entertainment & Recreation; Transportation & Warehousing; Wholesale Trade; Finance & Insurance; Other Services; Real Estate, Rental & Leasing; Accommodation & Food Services; Professional, Scientific & Technical Services; Information; Utilities; and Retail Trade. The four industries reporting a decrease in new orders in the month of June are: Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Construction; and Educational Services.

New Orders

%Higher

%Same

%Lower

Index

Jun 2026

25.9

57.0

17.1

55.1

May 2026

29.9

55.7

14.4

57.3

Apr 2026

28.9

54.8

16.3

53.5

Mar 2026

32.0

55.4

12.6

60.6

Employment
Employment activity in the services sector returned to expansion; the index registered 51.2 percent in June after three months in contraction. The reading is up 3.3 percentage points from the May figure of 47.9 percent and 2.5 percentage points above its 12-month average of 48.7 percent. Comments from respondents include: “Even though student population is down, we do not lay off staff for the summer — we actually hire counselors and sports camp directors, as we have several camps and youth conferences on campus” and “Summer interns hired.”

The nine industries reporting an increase in employment in June — listed in order — are: Retail Trade; Construction; Professional, Scientific & Technical Services; Accommodation & Food Services; Finance & Insurance; Wholesale Trade; Transportation & Warehousing; Health Care & Social Assistance; and Real Estate, Rental & Leasing. The five industries reporting a decrease in employment in June are: Agriculture, Forestry, Fishing & Hunting; Information; Educational Services; Public Administration; and Utilities.

Employment

%Higher

%Same

%Lower

Index

Jun 2026

16.0

73.1

10.9

51.2

May 2026

13.5

69.3

17.2

47.9

Apr 2026

10.6

74.9

14.5

48.0

Mar 2026

10.7

70.9

18.4

45.2

Supplier Deliveries
In June, the Supplier Deliveries Index indicated slower performance for the 19th month in a row. The index registered 54.4 percent, down 0.8 percentage point from the 55.2 percent recorded in May. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries. Comments from respondents include: “Omani supplier lead times normalizing, Strait of Hormuz reopened and regional logistics stabilizing” and “Data-center flange (large diameter) lead times are getting much longer as demand outpaces supply.”

The 14 industries reporting slower deliveries in June — in the following order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Wholesale Trade; Health Care & Social Assistance; Other Services; Accommodation & Food Services; Information; Transportation & Warehousing; Management of Companies & Support Services; Construction; Public Administration; Professional, Scientific & Technical Services; Finance & Insurance; and Educational Services. The two industries reporting a decrease in employment in June are: Real Estate, Rental & Leasing; and Utilities.

Supplier
Deliveries

%Slower

%Same

%Faster

Index

Jun 2026

12.1

84.6

3.3

54.4

May 2026

12.1

86.2

1.7

55.2

Apr 2026

14.7

84.1

1.2

56.8

Mar 2026

13.0

86.4

0.6

56.2

Inventories
The Inventories Index expanded for the fifth month in a row, registering 51.2 percent, an 11.3-percentage point decrease compared to the 62.5 percent reported in May. Of the total respondents in June, 27 percent indicated they do not have inventories or do not measure them. Comments from respondents include: “Incrementally higher due to capacity planned items with suppliers, causing us to have more on hand for future needs” and “Getting ready for annual physical inventories across all sites, so running leaner for counting purposes.”

The six industries reporting an increase in inventories in June — in the following order — are: Mining; Professional, Scientific & Technical Services; Information; Health Care & Social Assistance; Retail Trade; and Wholesale Trade. The seven industries reporting a decrease in inventories in June — in the following order — are: Other Services; Finance & Insurance; Construction; Educational Services; Management of Companies & Support Services; Public Administration; and Utilities.

Inventories

%Higher

%Same

%Lower

Index

Jun 2026

17.0

68.4

14.6

51.2

May 2026

33.3

58.4

8.3

62.5

Apr 2026

21.4

63.4

15.2

53.1

Mar 2026

19.9

69.8

10.3

54.8

Prices
Prices paid by services organizations for materials and services increased in June for the 109th consecutive month. The Prices Index registered 67.7 percent, a decrease of 3.6 percentage points from May’s reading of 71.3 percent, maintaining its 12-month average reading at 68 percent.

Sixteen industries reported an increase in prices paid during the month of June, in the following order: Accommodation & Food Services; Wholesale Trade; Construction; Other Services; Public Administration; Professional, Scientific & Technical Services; Information; Educational Services; Finance & Insurance; Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Mining; Transportation & Warehousing; Health Care & Social Assistance; Utilities; and Management of Companies & Support Services. No industries reported a decrease in prices paid.

Prices

%Higher

%Same

%Lower

Index

Jun 2026

40.7

55.5

3.8

67.7

May 2026

50.9

47.3

1.8

71.3

Apr 2026

50.7

48.0

1.3

70.7

Mar 2026

45.7

53.1

1.2

70.7

NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.

Backlog of Orders
The ISM® Services Backlog of Orders Index registered 54.9 percent, a 3.6-percentage point increase compared to the 51.3 percent reported in May and its highest level since February (55.9 percent). The index has been in expansion territory for five straight months. Of the total respondents in June, 29 percent indicated they do not measure backlog of orders. Respondent comments include: “Summer travel season has commenced” and “Data center work.”

The eight industries reporting an increase in order backlogs in June — in the following order — are: Real Estate, Rental & Leasing; Other Services; Accommodation & Food Services; Finance & Insurance; Professional, Scientific & Technical Services; Educational Services; Transportation & Warehousing; and Wholesale Trade. The seven industries reporting a decrease in order backlogs in June — in the following order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Management of Companies & Support Services; Information; Construction; Utilities; and Health Care & Social Assistance.

Backlog of
Orders

%Higher

%Same

%Lower

Index

Jun 2026

19.4

70.9

9.7

54.9

May 2026

17.8

66.9

15.3

51.3

Apr 2026

16.5

73.0

10.5

53.0

Mar 2026

16.1

75.0

8.9

53.6

New Export Orders
Orders and requests for services and other non-manufacturing activities to be provided outside of the U.S. by domestically based companies expanded in June. The New Export Orders Index registered 50.4 percent, up 0.4 percentage point compared to the May reading of 50 percent. Of the total respondents in June, 40 percent indicated they do not perform, or do not separately measure, orders for work outside of the U.S. Respondent comments include: “Mainly driven by Latin America and Europe” and “Lower cost products are in higher demand.”

The three industries reporting an increase in new export orders in June are: Arts, Entertainment & Recreation; Mining; and Professional, Scientific & Technical Services. The five industries reporting a decrease in new export orders in June are: Construction; Health Care & Social Assistance; Finance & Insurance; Utilities; and Accommodation & Food Services. Ten industries reported no change in exports in June.

New Export
Orders

%Higher

%Same

%Lower

Index

Jun 2026

10.5

79.7

9.8

50.4

May 2026

10.2

79.6

10.2

50.0

Apr 2026

17.2

69.7

13.1

52.1

Mar 2026

15.5

70.4

14.1

50.7

Imports
The Imports Index dropped into contraction territory in June after four months in expansion, registering 49.4 percent, 1.7 percentage points lower than the 51.1 percent reported in May. Of the total respondents in June, 36 percent reported that they do not use, or do not track the use of, imported materials. Respondent comments include: “Imports were not down in volume terms but became significantly more expensive, especially energy-linked imports, due to the U.S.-Iran war; hoping the cost of imports will decrease in the coming weeks (after the ceasefire)” and “Sourcing more equipment regionally to mitigate costs of tariffs.”

The five industries reporting an increase in imports for the month of June are: Arts, Entertainment & Recreation; Transportation & Warehousing; Professional, Scientific & Technical Services; Accommodation & Food Services; and Wholesale Trade. The four industries reporting a decrease in imports in June are: Other Services; Educational Services; Management of Companies & Support Services; and Health Care & Social Assistance. Nine industries reported no change in imports in June.

Imports

%Higher

%Same

%Lower

Index

Jun 2026

6.6

85.5

7.9

49.4

May 2026

5.1

91.9

3.0

51.1

Apr 2026

12.4

84.6

3.0

54.7

Mar 2026

16.4

77.6

6.0

55.2

Inventory Sentiment
The ISM® Services Inventory Sentiment Index was in expansion (or “too high”) territory for the 38th consecutive month in June; the reading of 52.6 percent is a decrease of 2.6 percentage points compared to May’s figure of 55.2 percent. This reading indicates that respondents feel their companies’ inventory levels are too high when correlated to business requirements.

The nine industries reporting sentiment that their inventories were too high in June, in order, are: Other Services; Mining; Wholesale Trade; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Construction; Utilities; and Health Care & Social Assistance. The two industries reporting a decrease in inventory sentiment in June are: Finance & Insurance; and Professional, Scientific & Technical Services. Seven industries reported no change in inventory sentiment in June.

Inventory
Sentiment

%Too

High

%About
Right

%Too

Low

Index

Jun 2026

11.8

81.6

6.6

52.6

May 2026

16.0

78.3

5.7

55.2

Apr 2026

15.2

79.8

5.0

55.1

Mar 2026

12.8

82.9

4.3

54.3

About This Report
DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of June 2026.

The data presented herein is obtained from a survey of supply executives in the services sector based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

Data and Method of Presentation
The ISM® Services PMI® Report (formerly the Non-Manufacturing ISM® Report On Business®) is based on data compiled from purchasing and supply executives nationwide. Membership of the Services Business Survey Panel (formerly Non-Manufacturing Business Survey Committee) is diversified by the North American Industry Classification System (NAICS), based on each industry’s contribution to gross domestic product (GDP). The Services Business Survey Panel responses are divided into the following NAICS code categories: Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation & Warehousing; Information; Finance & Insurance; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Educational Services; Health Care & Social Assistance; Arts, Entertainment & Recreation; Accommodation & Food Services; Public Administration; and Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services). The data are weighted based on each industry’s contribution to GDP. According to U.S. Bureau of Economic Analysis (BEA) estimates (the average of the fourth quarter 2024 GDP estimate and the GDP estimates for first, second, and third quarter 2025, as released on January 22, 2026), the six largest services sectors are: Real Estate, Rental & Leasing; Public Administration; Professional, Scientific, & Technical Services; Health Care & Social Assistance; Information; and Finance & Insurance.

Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory Sentiment, Imports, Prices, Employment and Supplier Deliveries), this report shows the percentage reporting each response and the diffusion index. Responses represent raw data and are never changed. Data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The remaining indexes have not indicated significant seasonality.

The Services PMI® is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. An index reading above 50 percent indicates that the services economy is generally expanding; below 50 percent indicates that it is generally declining. Supplier Deliveries is an exception. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.

A Services PMI® above 48.1 percent, over time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.1 percent, it is generally declining. The distance from 50 percent or 48.1 percent is indicative of the strength of the expansion or decline.

The ISM® Services PMI® Report survey is sent out to Services Business Survey Panel respondents in the first part of each month. Respondents are asked to ONLY report on U.S. operations for the current month. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to give the most accurate picture of current business activity. ISM® then compiles the report for release on the third business day of the following month.

The industries reporting growth, as indicated in the ISM® Services PMI® Report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.

ISM PMI® Content

The Institute for Supply Management® (“ISM®”) PMI® Reports, formerly Report On Business®, (Manufacturing and Services reports) (“ISM PMI®”) contain information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, “Content”) of ISM (“ISM PMI® Content”). ISM PMI® Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM PMI® Content. ISM hereby grants you a limited, revocable, nonsublicensable license to access and display on your individual device the ISM PMI® Content (excluding any software code) solely for your personal, non-commercial use. The ISM PMI® Content shall also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM PMI® Content.

Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including but not limited to tables, charts, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM PMI® Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered or given away. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit.

You shall not create, recreate, distribute, incorporate in other work or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM PMI® Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 350 W. Washington St. — Papago Gateway, Suite 301, Tempe, AZ 85288-1495, or by emailing kcahill@ismworld.org; Subject: Content Request.

ISM shall not have any liability, duty or obligation for or relating to the ISM PMI® Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM PMI® Content or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages arising out of the use of the ISM PMI®. Report On Business®, PMI®, Manufacturing PMI® and Services PMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc.

About Institute for Supply Management®

Institute for Supply Management® (ISM®) is the first and leading not-for-profit professional supply management organization worldwide. Its community of more than 50,000 in more than 100 countries around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the strategy and practice of integrated, end-to-end supply chain management through leading edge data-driven resources, community, and education to empower individuals, create organizational value and to drive competitive advantage. ISM’s vision is to foster a prosperous, sustainable world. ISM empowers and leads the profession through the ISM® PMI® Reports (formerly Report On Business®), its highly regarded certification and training programs, corporate services, events and assessments. The ISM® PMI® Reports — Manufacturing and Services — are two of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders. For more information, please visit: https://www.ismworld.org.

The full text version of the ISM® Services PMI® Report is posted on ISM®’s website at www.ismrob.org on the third business day* of every month after 10:00 a.m. ET. The one exception is in January, the report is released on the fourth business day of the month.

The next ISM® Services PMI® Report featuring July 2026 data will be released at 10:00 a.m. ET on Wednesday, August 5, 2026.

*Unless the New York Stock Exchange is closed.

Contact:           

Kristina Cahill

PMI® Reports Analyst

ISM®, PMI®/Research Manager

Tempe, Arizona

+1 480.455.5910

Email: kcahill@ismworld.org

View original content to download multimedia:https://www.prnewswire.com/news-releases/services-pmi-at-54-june-2026-ism-services-pmi-report-302817275.html

SOURCE Institute for Supply Management

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Technology

Car Wars and Revvable Partner to Connect Customer Conversations Directly to the Powersports Deal Pipeline

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Car Wars, the leading provider of innovative phone solutions for dealerships, has integrated with Revvable, the CRM built specifically for powersports dealers. The integration connects Car Wars’ call intelligence and conversation tracking directly into Revvable’s pipeline, giving powersports dealerships one connected view from first inquiry to purchase.

DALLAS, July 6, 2026 /PRNewswire-PRWeb/ — Car Wars, the leading provider of innovative phone solutions for dealerships, has integrated with Revvable, the CRM built specifically for powersports dealers. The integration connects Car Wars’ call intelligence and conversation tracking directly into Revvable’s pipeline, giving powersports dealerships one connected view from first inquiry to purchase.

Car Wars helps dealership teams turn every call into a tracked, actionable part of the sales process. Built on CRISP best practices, Car Wars gives dealerships visibility into what’s driving calls, what’s happening on them, and which ones turn into deals.

Revvable manages the entire deal journey in a single system. “A CRM should tell you the full story, and without call data you’re missing a massive piece of the puzzle,” said Jory Anderson, CEO of Revvable. “Car Wars fills that gap, so dealers see every deal from the first conversation to the close.” With Car Wars now integrated into that pipeline, every call becomes part of the deal record automatically, attached to the right customer and the right opportunity without manual entry or guesswork.

“Powersports dealers move fast, and their tools need to move with them,” said Stephane Ferri, CEO at Car Wars. “This integration means every conversation is captured where the deal actually lives, so reps spend less time on data entry and more time closing.”

By leveraging this integration, dealerships using Revvable can:

Keep every call automatically logged and attached to the right customer and opportunityEliminate manual entry between their call tracking solution and the CRMGive reps a complete activity feed with calls included, alongside credit, inventory, and communication historyHelp managers coach with full context instead of piecing together what happened across systemsMove faster from first inquiry to signed deal with nothing falling through the cracks

This integration is available now, giving powersports dealers on Car Wars and Revvable a single, connected view of every deal.

To learn more about Car Wars, visit https://carwars.com/main/

Media Contact

Megan Pike, Car Wars, 1 7204024023, mpike@callbox.com

View original content:https://www.prweb.com/releases/car-wars-and-revvable-partner-to-connect-customer-conversations-directly-to-the-powersports-deal-pipeline-302816587.html

SOURCE Car Wars

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Technology

THIRDREALITY Introduces Smart Timer Light TL2, Its First Matter over Wi-Fi Device with 60GHz Presence Sensing

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THIRDREALITY today announced the Smart Timer Light TL2, the company’s first presence-sensing product built on Matter over Wi-Fi.

SAN JOSE, Calif., July 6, 2026 /PRNewswire-PRWeb/ — Building on THIRDREALITY’s experience in smart lighting and presence sensing, TL2 brings 60GHz mmWave detection into a different type of device—one designed not only to support connected automations, but also to be used directly as a digital clock, countdown timer and adjustable light.

The compact plug-in device combines presence-aware automation with a digital clock, countdown timer and RGB status lighting

Built-in 60GHz mmWave radar detects both movement and stationary presence, including during quieter activities such as reading, working or resting. This allows supported routines to keep connected devices active while a room remains occupied and turn them off after vacancy has been confirmed.

The lighting system provides soft, evenly distributed RGB and white illumination. In compatible routines, different colors can also serve as visual status indicators for household events or connected device states.

TL2 adds local countdown controls to the clock display. Users can select 5-, 10-, 15- or 60-minute countdowns directly from the device. The display supports both 12-hour and 24-hour formats and automatically rotates when the device is repositioned.

Built on Matter over Wi-Fi, TL2 can be added to supported Matter platforms through a compatible Matter controller. It is also Works with Alexa certified and supports Frustration-Free Setup with Alexa on compatible devices.

Once powered on, TL2 can be automatically discovered and connected in the Alexa app, without requiring users to manually enter a Wi-Fi password or complete a separate pairing process.

Availability

THIRDREALITY Smart Timer Light TL2 is now available online,priced at $49.99 , including Amazon: https://www.amazon.com/dp/B0GYS842T9 or https://www.thirdreality.com/products/smart-timer-light-tl2. For more information and products about THIRDREALITY, you can visit the official website: https://www.thirdreality.com/

About THIRDREALITY

Third Reality is a smart home technology company, dedicated to developing high-quality, user-friendly, and secure smart home products. Through continuous innovation and a deep understanding of market needs, the company strives to provide an improved smart home experience for users worldwide.

Related Links:

Twitter | Instagram | Facebook | YouTube | TikTok

Media Contact

Tina zhu, Third Reality, Inc., 1 8003419616, info@3reality.comhttps://www.thirdreality.com/

Twitter, LinkedIn

View original content to download multimedia:https://www.prweb.com/releases/thirdreality-introduces-smart-timer-light-tl2-its-first-matter-over-wi-fi-device-with-60ghz-presence-sensing-302817762.html

SOURCE Third Reality, Inc.

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