ISM Services PMI

Data PMI Services

Source: Institute of Supply Management
Source Link: https://www.ismworld.org/
Frequency: Monthly
Next Release(s): February 4th, 2026 10:00 AM

Latest Updates

The ISM Services PMI rose +1.8 pts to 54.4 in December 2025 (from 52.6 in November), the highest reading since October, signaling faster services-sector expansion at year-end.
- The Business Activity Index increased to 56.0 (+1.5 pts MoM), indicating a quicker pace of output growth and extending expansion to a third consecutive month.
- The New Orders Index jumped to 57.9 (+5.0 pts MoM), its fastest growth in seven months, pointing to a notable acceleration in demand entering 2026.
- The Employment Index moved back into expansion at 52.0 (+3.1 pts MoM) after six months in contraction, marking its first expansionary reading since May 2025.
- The Supplier Deliveries Index eased to 51.8 (-2.3 pts MoM) but remained above 50 for a 13th straight month, indicating delivery times are still slowing, though at a reduced pace.
- The Prices Index declined to 64.3 (-1.1 pts MoM), the lowest since March 2025, but stayed above 60 for a 13th consecutive month, showing cost pressures remain elevated despite some easing.
- The Inventories Index rose to 54.2 (+0.8 pts MoM), signaling a second month of inventory expansion, while Inventory Sentiment stayed in “too high” territory at 54.1 (-0.7 pts).
- The Backlog of Orders Index fell further into contraction at 42.6 (-6.5 pts MoM), extending the contraction streak to ten months and indicating faster clearing of outstanding work.
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The ISM Services PMI rose +0.2 pts to 52.6 in November 2025 (from 52.4 in October), staying in expansion for a ninth month and sitting 0.9 pts above its 12-month average, indicating modest but ongoing services-sector growth.
- Business Activity held firm at 54.5 in November (+0.2 pts), while the New Orders Index eased to 52.9 (-3.3 pts) but remained above its 12-month average of 51.7 and has now been in expansion in 33 of the last 35 months, showing demand is still growing but at a slower pace.
- The Employment Index remained in contraction at 48.9 (+0.7 pts), marking a sixth straight month below 50 but its highest reading since May, with respondents noting both efforts to fill vacancies and difficulty attracting applicants under in-office requirements.
- Supplier Deliveries rose to 54.1 (+3.3 pts), signaling slower delivery times for a 12th consecutive month and the second-highest reading since October 2022, as respondents cited tariffs, border delays tied to the government shutdown, and customs processing issues.
- The Prices Index fell to 65.4 (-4.6 pts from 70.0), its lowest since April but still above 60 for the 12th straight month and marking the 102nd consecutive month of price increases, indicating input cost inflation remains elevated despite some easing.
- The Inventories Index returned to expansion at 53.4 (+3.9 pts), while the Inventory Sentiment Index stayed in “too high” territory at 54.8 (-0.7 pts), suggesting firms are rebuilding or normalizing stock levels even as many still see inventories above business needs.
- The Backlog of Orders Index improved to 49.1 (+8.3 pts) but stayed in contraction for a ninth month, recording its largest monthly increase since June 2022 and moving 3.8 pts above its 12-month average, pointing to a slower rate of backlog depletion.
- New Export Orders (48.7, +0.9 pts) and Imports (48.9, +5.2 pts) both remained in contraction but improved from October, with comments highlighting mixed foreign demand, tariff-related headwinds, and some reshoring toward USMCA suppliers.
- ISM noted that a Services PMI above 48.6 historically corresponds to overall GDP growth; November’s 52.6 reading implies roughly 1.3% annualized real GDP growth and marks the 66th consecutive month of overall US economic expansion, with 12 services industries reporting growth and 5 reporting contraction.
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The ISM Services PMI rose +2.4 pts to 52.4 in October 2025 (from 50.0 in September), marking a return to expansion and signaling renewed growth momentum in the services sector.
- Business Activity rebounded to 54.3 (+4.4 pts), indicating stronger output after briefly contracting in September.
- New Orders surged to 56.2 (+5.8 pts), the fastest pace since October 2024, supported by improving demand and new client wins.
- Employment remained in contraction at 48.2 (+1.0 pt), marking the fifth straight month of decline, though the pace of job losses slowed.
- Supplier Deliveries eased to 50.8 (-1.8 pts), showing slower delivery performance for an 11th consecutive month as demand remained steady.
- Prices Paid climbed to 70.0 (+0.6 pts), reaching the highest since October 2022 and extending the streak above 60 for 11 straight months.
- Inventories stayed in contraction at 49.5 (+1.7 pts), while Inventory Sentiment remained elevated at 55.5, indicating stock levels still viewed as too high.
- Backlogs fell sharply to 40.8 (-6.5 pts), the weakest since mid-2009, suggesting firms are comfortably meeting new orders.
- New Export Orders improved modestly to 47.8 (+1.3 pts) but remained in contraction, while Imports dropped further to 43.7 (-5.5 pts), reflecting reduced overseas sourcing.
- ISM noted that October’s PMI corresponds to roughly 1.2% annualized GDP growth, with stable demand but continued caution in hiring and order backlogs.
Source
The ISM Services PMI fell to 50.0 in September (from 52.0 in August), the first breakeven reading since January 2010, signaling stagnation in the services sector after modest summer growth.
- The Business Activity Index dropped -5.1 pts to 49.9, contracting for the first time since May 2020 as demand weakened.
- New Orders slowed sharply, down -5.6 pts to 50.4, barely holding in expansion after strong August growth.
- Employment remained in contraction at 47.2 (+0.7 pts), marking the fourth straight monthly decline and fifth in the past six months.
- Supplier Deliveries rose +2.3 pts to 52.6, indicating slower deliveries for a 10th straight month, a sign of lingering supply-side challenges.
- The Prices Index edged up to 69.4 (+0.2 pts), extending its streak above 60 to ten months and underscoring persistent cost pressures.
- Inventories slipped into contraction at 47.8 (-5.4 pts), the lowest since January, while Inventory Sentiment rose to 55.7, reflecting continued perceptions of excess stock.
- Backlogs improved to 47.3 (+6.9 pts) but remained in contraction for a seventh straight month, suggesting limited pipeline strength.
- New Export Orders fell further to 46.5 (-0.8 pts), the third consecutive monthly decline, pointing to ongoing weakness in overseas demand.
- Imports dropped back into contraction at 49.2 (-5.4 pts), after briefly expanding in August.
Source
The ISM Services PMI rose to 52.0 in August 2025 (from 50.1 in July), signaling modest strengthening in services activity despite ongoing employment weakness and tariff-related pressures.
- Business Activity increased +2.4 pts to 55.0, staying in expansion for the 51st consecutive month and showing stronger momentum heading into the holiday season.
- New Orders jumped +5.7 pts to 56.0, reflecting faster demand growth, with some respondents noting activity tied to tariff-driven pre-buying.
- Employment remained in contraction at 46.5 (+0.1 pt), marking the third straight monthly decline and fifth in the past six months.
- Supplier Deliveries edged down -0.7 pts to 50.3, signaling slower delivery performance for the ninth consecutive month.
- Inventories rose +1.4 pts to 53.2, the third month of expansion, as firms built safety stock in anticipation of price increases.
- Inventory Sentiment increased +2.3 pts to 55.5, the 28th consecutive month of respondents reporting inventory levels “too high.”
- Prices stayed elevated at 69.2 (-0.7 pts), extending the streak above 60 for nine months and showing continued cost pressures.
- Backlogs contracted sharply to 40.4 (-3.9 pts), the lowest since May 2009, marking the sixth straight month in contraction.
- New Export Orders fell -0.6 pts to 47.3, the fifth contraction in 2025, with mixed reports of overseas demand.
- Imports surged +8.7 pts to 54.6, rebounding into expansion for the first time since May and reaching the highest level since January 2024.
Source
The ISM Services PMI fell to 50.1 in July from 50.8 in June, indicating the sector remains in expansion but with slowing momentum. The index suggests a modest +0.5% annualized GDP growth.
- Business Activity eased -1.6 pts to 52.6, staying in expansion but slowing amid tariff-related buying and weather disruptions.
- New Orders fell -1.0 pt to 50.3, reflecting mixed demand across industries with defense strength but non-defense weakness.
- Employment declined -0.8 pt to 46.4, marking the second consecutive month in contraction as firms face hiring difficulties.
- Prices jumped +2.4 pts to 69.9, hitting the highest level since October 2022 amid broad-based input cost increases.
- Supplier Deliveries rose to 51.0 (+0.7 pts), indicating slightly slower delivery performance for the eighth month straight.
- Inventories edged down -0.9 pts to 51.8, still in expansion but with efforts underway to reduce stockpiles ahead of tariffs.
- Backlogs improved to 44.3 (+1.9 pts) but remained in contraction for the fifth consecutive month.
- New Export Orders dropped -3.2 pts to 47.9, the fourth monthly decline in 2025 amid geopolitical headwinds.
- Imports plunged -5.8 pts to 45.9, falling back into contraction territory on lower demand and rising costs.
- Inventory Sentiment decreased -3.9 pts to 53.2, the lowest since Oct 2024, though still reflecting excess inventory levels.
Source
The ISM Services PMI rose to 50.8 in June from 49.9 in May, signaling a return to expansion in the US services sector after briefly contracting in May.
- New Orders rebounded +4.9 pts to 51.3, driven by domestic demand and companies reshoring operations.
- Business Activity jumped +4.2 pts to 54.2, supported by holiday-related sales and facility-scale operations.
- Employment fell -3.5 pts to 47.2, returning to contraction amid paused hiring and internal backfilling.
- Prices eased -1.2 pts to 67.5 but remained elevated, with widespread cost increases tied to tariffs and wages.
- Backlogs shrank for the fourth straight month (42.4)
- New export orders and imports both returned to expansion, rising 2.6 pts to 51.1 and 3.5 pts to 51.7, respectively.
Source
The ISM Services PMI fell to 49.9 in May from 51.6 in April, indicating the first contraction in the services sector since June 2024.
- New Orders dropped -5.9 pts to 46.4, returning to contraction for the first time since December.
- Business Activity fell -3.7 pts to 50.0, ending a 47-month expansion streak.
- Employment rose +1.7 pts to 50.7, returning to growth after two months of contraction.
- Prices rose +3.6 pts to 68.7, the highest since November 2022 and up 7.8 pts in the past two months.
- Inventories declined -3.7 pts to 49.7, moving back into contraction after one month of growth.
Source
The ISM Services PMI rose to 51.6 in April from 50.8 in March, signaling continued expansion in the services sector for the 10th consecutive month.
- New Orders rose 1.9 pts to 52.3, while Employment improved 2.8 pts to 49.0 but remained in contraction territory.
- Business Activity fell -2.2 pts to 53.7, though still in expansion for the 59th straight month.
- The Prices Index jumped 4.2 pts to 65.1, its highest since Jan 2023, reflecting broad cost pressures across industries.
- Supplier Deliveries edged up 0.7 pts to 51.3, indicating slightly slower delivery times.
- The Backlog of Orders Index remained in contraction at 48.0, and Imports dropped sharply to 44.3, down -8.3 pts.
Source
The ISM Services PMI fell -2.7 pts to 50.8 in March, below expectations of a minor decline to 53.0.
- Business Activity improved 1.5 pts to 55.9, but the New Orders index fell -1.8 pts to 50.4, suggesting demand growth was basically flat.
- Employment dropped -7.7 pts to 46.2, signaling a moderate decline in staffing numbers.
- The Price index fell -1.7 pts to 60.9, remaining above 60 for the fourth straight month.
- The New Export Orders index dropped -6.3 pts to 45.8, the first contraction in four months. Many respondents pointed to a tariffs as an issue impacting them.
Source
The ISM Services PMI increased 0.7 pts to 53.5 in February, above expectations of a slight drop to 52.6.
- Business Activity remained growing moderately, down -0.1 pts to 54.4 while New Order growth quickened, up 0.9 pts to 52.2.
- Employment growth strengthened, up 1.6 pts to 53.9, unlike evidence of a decline in staff numbers in manufacturing.
- The Prices index increased 2.2 pts to 62.6 which means that both the services and manufacturing price indexes are above 60. The last time this happened was in July 2022.
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The ISM Services PMI increased 2.0 pts to 54.1 in December, above expectations of an increase to 53.3. The Business Activity index jumped 4.5 pts to 58.2, outpacing the increase in the New Orders index which increased 0.5 pts to 54.2. Employment continues to increase but at a slightly slower pace at 51.4.

The biggest move was in the Prices index which jumped 6.2 pts to 64.4. Analysts expected the Prices index to actually decline in December to 57.5, but inflationary pressures surged to the worst since February 2023 to end the year.

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