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.