US Services Sector Expands in September, ISM PMI Hits 54.9%
The ISM Services PMI rose to 54.9% in September 2026, signaling continued broad expansion across the US services sector.
Economic activity in the United States services sector continued to grow in September 2026, with the Institute for Supply Management's Services PMI registering 54.9%, according to a report released Oct. 5 from Tempe, Ariz. Any reading above 50% indicates expansion in the sector, which accounts for the majority of the American economy.
The Business Activity Index climbed to 56.5% for the month, reflecting robust output among services firms. New Orders — a forward-looking indicator closely watched by economists — reached 59.8%, suggesting demand remained strong heading into the fourth quarter.
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The Employment Index edged above the neutral threshold to 50.1%, indicating marginal but positive hiring momentum within the services industry. The Supplier Deliveries Index came in at 53.2%, a reading that signals slower delivery times, which is typically interpreted as a sign of heightened demand placing pressure on supply chains.
The composite results, drawn from surveys of the nation's purchasing and supply executives, point to a services economy that has maintained its expansion trajectory despite ongoing questions about interest rate policy and consumer spending durability. Strong new orders data may bolster expectations for continued economic resilience through the remainder of 2026.
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