US Services Sector Expands in October, ISM PMI Hits 54.5%
The ISM Services PMI rose to 54.5% in October 2026, signaling continued growth across the US services sector.
Economic activity in the United States services sector expanded again in October 2026, with the Institute for Supply Management's Services PMI registering 54.5%, according to a report released by the Tempe, Arizona-based organization. Any reading above 50% indicates expansion in the sector, which accounts for the majority of US economic output.
The Business Activity Index came in at 53.8%, while the New Orders Index advanced to 55.9%, pointing to strengthening demand among services firms. The Employment Index posted 51.4%, a sign that services businesses continued to add workers during the month, albeit at a measured pace.
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The Supplier Deliveries Index rose to 56.7%, reflecting slower delivery times — a metric that in the context of services expansion typically signals heightened demand placing pressure on supply chains. Purchasing and supply executives surveyed by ISM reported that conditions across the broader services economy remained on a growth trajectory heading into the final months of 2026.
The October figures reinforce a pattern of resilience in the services sector, which encompasses industries ranging from finance and healthcare to hospitality and retail. Analysts tracking the data will likely weigh the readings against broader macroeconomic indicators, including labor market data and consumer spending trends, to assess the durability of the expansion.
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