US ISM Services PMI Highest since February

The ISM Services PMI for the US climbed to 56.1 in February 2026 from 53.8 in January, beating market expectations of 53.5 and marking the fastest expansion in the sector since August 2022. Growth was driven by a sharp pickup in business activity, with the subindex rising to 59.9 from 57.4, its strongest reading since September 2024. New orders recorded the sharpest rise in 17 months (58.6 vs 53.1), while employment growth accelerated to its strongest level in a year (51.8 vs 50.3). The Supplier Deliveries Index slipped to 53.9 from 54.2, marking a 15th straight month above 50, which signals slower deliveries and solid demand. Meanwhile, the Prices Index fell to 63, its lowest since March 2025, though still above 60, indicating persistent cost pressures.

The ISM Services PMI for the US steadied at 53.8 in January 2026, the same as a downwardly revised 53.8 in December and better than forecasts of 53.5. The reading pointed to another robust expansion in the services sector, with a faster increase seen for business activity/production (57.4 vs 55.2) while new orders (53.1 vs 56.5), employment (50.3 vs 51.7) and supplier deliveries (54.2 vs 51.8) slowed. Inventories (45.1 vs 54.2) and backlog of orders (44 vs 42.6) remained in contraction but price pressures increased (66.6 vs 65.1). "There was more respondent commentary in January on tariff impacts and uncertainty, potentially the result of annual contract renewals and geopolitical tensions. Gasoline and diesel fuel continued to be cited as commodities down in price. With the highest Business Activity and Supplier Deliveries index readings since October 2024, whether pricing increases will stick or expand needs to be closely watched”, according to Steve Miller, Chair of the ISM.

The ISM Services PMI for the US increased for a third consecutive month to 54.4 in December 2025 from 52.6 in November, well above forecasts of 52.3. The reading pointed to the strongest growth in the services sector since October 2024, with all subindexes in expansion territory for the first time since February. Companies frequently mentioned impacts related to the holiday season and activity increases related to end-of-year activities or preparation for 2026. Business activity/production (56 vs 54.5), new orders (57.9 vs 52.9) and inventories (54.2 vs 53.4) rose at a faster pace while a rebound was seen in employment (52 vs 48.9), new export orders (54.2 vs 48.7) and imports (50.3 vs 48.9). Also, price pressures eased slightly (64.3 vs 65.4) and the supplier deliveries index indicated slower performance (51.8 vs 54.1).