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.