US Services Sector Expands in September, ISM PMI Hits 54.9%
The ISM Services PMI rose to 54.9% in September 2026, signaling broad expansion across the US services economy.
Economic activity in the United States services sector continued to expand in September 2026, according to the Institute for Supply Management's monthly purchasing managers survey, with the headline Services PMI registering 54.9% — a reading above 50% indicating growth.
The Business Activity Index climbed to 56.5%, reflecting stronger output across services industries, while the New Orders Index posted a notably robust 59.8%, suggesting demand conditions remained healthy heading into the final quarter of the year. A New Orders reading at that level points to sustained pipeline activity that could support continued near-term expansion.
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The Employment Index edged just above the breakeven threshold at 50.1%, indicating services firms added workers at only a marginal pace in September. That figure may draw attention from economists watching labor market conditions, as it suggests hiring momentum in the sector has softened even as overall business activity accelerates.
The Supplier Deliveries Index came in at 53.2%, signaling that delivery times lengthened during the month. In the services PMI methodology, a reading above 50% on this sub-index reflects slower deliveries, which can indicate capacity pressures building within supply chains. Taken together, the September data present a picture of a services economy still firmly in expansion territory, though with nuanced signals on employment and supply capacity worth monitoring.
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