The ISM Services PMI held at 53.8 in January 2026 (unchanged from December), marking a 19th consecutive month in expansion and running about +2.0 pts above the 12-month average (51.8).

• The Business Activity Index rose to 57.4 (+2.2 pts MoM), the highest since October 2024, signaling faster services output growth.

• The New Orders Index fell to 53.1 (-3.4 pts MoM) but stayed in expansion, indicating slower demand growth even as orders continued to rise.

• The Employment Index eased to 50.3 (-1.4 pts MoM) but remained barely expansionary for a second month, suggesting hiring continued but at a slower pace.

• The Supplier Deliveries Index increased to 54.2 (+2.4 pts MoM), indicating slower deliveries and the highest reading since October 2024.

• The Prices Index climbed to 66.6 (+1.5 pts MoM) and remained above 60 for a 14th straight month, showing elevated cost pressures that moved higher again in January.

• The Inventories Index dropped to 45.1 (-9.1 pts MoM), shifting back into contraction after two months of expansion, while Inventory Sentiment stayed in “too high” territory at 54.3 (+0.2 pts).

• The Backlog of Orders Index rose to 44.0 (+1.4 pts MoM) but stayed in contraction for an 11th month, and New Export Orders fell to 45.0 (-9.2 pts) as exports moved back into contraction after one month of growth.