US Services Sector Expands in September, ISM PMI Hits 54.9%
The ISM Services PMI rose to 54.9% in September 2026, signaling continued expansion across the US services sector.
Economic activity in the United States services sector continued to grow in September 2026, according to the latest Institute for Supply Management report, with the Services PMI registering 54.9% — a reading above 50% indicating expansion in the sector that accounts for the bulk of the American economy.
The Business Activity Index climbed to 56.5%, reflecting stronger output among service-providing firms, while the New Orders Index reached 59.8%, a notably robust figure suggesting that demand pipelines remain healthy heading into the fourth quarter. Both readings point to sustained momentum rather than a slowdown.
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Employment in the services sector held just above the neutral threshold, with the Employment Index at 50.1%, indicating marginal but positive job growth among purchasing and supply executives surveyed. The Supplier Deliveries Index came in at 53.2%, a reading above 50% that in this index denotes slower deliveries — typically interpreted as a sign of firmer demand placing pressure on supply chains.
The data, released October 5, 2026, from Tempe, Arizona, was compiled from responses provided by the nation's purchasing and supply executives and reflects conditions across a broad range of service industries. A sustained Services PMI above 50% over consecutive months generally signals durable economic expansion in the dominant segment of the US economy.
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