29 Sept 2025
The ISM Services PMI data for the current period was released, surpassing previous figures and forecasts, indicating significant growth in certain sectors. The US services sector has now recorded growth for the third consecutive month, demonstrating resilience despite persistent inflationary pressures and employment contraction.
The ISM Services PMI data from the ISM institute, covering the services sector, was released, performing better than both the previous number and predictions, showing good growth in specific areas.
Business activity and new orders exhibited significant growth, with new orders increasing by approximately 5.5%.
The services sector has recorded growth for the third consecutive month.
The Business Activity Index was reported at 55.5%.
The New Orders Index was registered at 56.5%.
The Employment Index remained in the contraction zone for the third consecutive month and the fifth time in the past six months, standing at 46.5%.
The Supplier Deliveries Index was published at approximately 50%, marking its ninth consecutive month in the growth region, though it still indicates some slowness in deliveries.
The Prices Index maintained its increasing trend, hovering around 69%.
The Inventories Index showed growth for the third consecutive month, reaching 53%.
The Backlog of Orders Index was reported at 40%, marking its sixth consecutive month of contraction and its lowest level since May 2009.
Twelve sectors, including Information, Retail Trade, Arts, Entertainment & Recreation, Warehousing & Transportation, Educational Services, Public Administration, Professional, Scientific & Technical Services, Health Care & Social Assistance, Real Estate, and Management of Companies, reported growth.
Accommodation & Food Services, Legal Services, Management of Companies & Enterprises, and Construction announced they remain in a state of contraction.
Companies in Accommodation & Food Services are beginning to observe the effects of tariffs on imported goods, especially from Asia and South America, and expect to see the full impact on their cost of goods sold by October.
Tariffs are currently impacting prices in the agricultural sector, which relies on European imports, and while these companies do not intend to transfer these costs to customers, they acknowledge this trend is unfavorable.
Financial and insurance services continue to report pressure from tariffs, with suppliers seeking price increases that companies are not in a strong position to pay.
Support services remain cautious but anticipate a favorable financial year in 2026.
The hospitality services sector still experiences some stagnation, but companies are striving to manage operational and distribution costs.
The real estate sector achieved its strongest quarter since its 2022 public offering, primarily due to increasing merger and acquisition activity, despite a weak housing market and higher tariffs.
Retail trade remains heavily influenced by tariffs, with decisions and management strategies largely based on their effects.
The transportation sector is generally in contraction, largely because customers have become very sensitive to pricing.
The US services sector, the largest segment of the economy, is showing signs of recovery after five months of stagnation.
Service companies continue to face pressure from rising raw material costs and are grappling with inflationary pressures.
Growth in new orders and business activities is essential to encourage companies to increase hiring, and a stable trend can contribute to increased employment.
Job opportunities have fallen to their lowest level in ten months, indicating a reduced willingness to recruit new workers.
The services sector continues to demonstrate resilience and is currently on a positive trajectory.
The US services sector, representing the largest portion of the American economy, is showing signs of renewed vigor after five months of stagnation.
| Metric | Status | Insight |
|---|---|---|
| Overall PMI Data | Better than previous and forecast | Indicates renewed strength in the services sector. |
| Business Activity Index | 55.5% | Strong growth for the third consecutive month. |
| New Orders Index | 56.5% | Robust demand, contributing to overall sector growth. |
| Employment Index | 46.5% (Contraction) | Remained in contraction for the third consecutive month and fifth time in six months. |
| Supplier Deliveries Index | ~50% (Growth, but slow) | Ninth consecutive month of growth, yet indicates persistent delivery slowness. |
| Prices Index | ~69% (Increasing trend) | Sustained inflationary pressures are impacting costs. |
| Backlog of Orders Index | 40% (Contraction) | Six consecutive months of contraction; lowest level since May 2009. |
| Tariff Impact | Significant pressure | Affecting costs, pricing, and decision-making across multiple sectors, with full effects expected by October for some. |
| US Services Economy | Regaining strength | The largest segment of the US economy is showing recovery after five months of stagnation. |
