US Services Sector Expands in October, ISM PMI Hits 54.5%
The ISM Services PMI rose to 54.5% in October 2026, signaling continued expansion across the US services sector.
Economic activity in the United States services sector continued to grow in October 2026, according to the Institute for Supply Management's monthly survey of purchasing and supply executives. The headline Services PMI registered 54.5%, a reading above the 50% threshold that separates expansion from contraction.
Key sub-indexes reinforced the broader growth picture. The New Orders Index came in at 55.9%, reflecting sustained demand, while the Business Activity Index stood at 53.8%. The Employment Index reached 51.4%, indicating modest hiring gains within services industries during the month.
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The Supplier Deliveries Index posted the highest reading among the tracked components at 56.7%. In ISM methodology, a Supplier Deliveries figure above 50% signals slower delivery times, which is typically associated with stronger demand placing pressure on supply chains.
The services sector accounts for the majority of US economic output and employment, making the monthly ISM report a closely watched indicator of broader economic health. Consecutive months of expansion suggest resilient consumer and business spending on services despite ongoing macroeconomic uncertainties.
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