Services PMI® at 54.9%; September 2026 ISM® Services PMI® Report

Business Activity Index at 56.5%; New Orders Index at 59.8%; Employment Index at 50.1%; Supplier Deliveries Index at 53.2%

TEMPE, Ariz., Oct. 5, 2026 /PRNewswire/ -- Economic activity in the services sector continued to expand in September, say the nation's purchasing and supply executives in the latest ISM^® Services PMI^® Report. The Services PMI^® registered 54.9 percent, the 27th consecutive month in expansion territory.

The report was issued today by Steve Miller, CPSM, CSCP, Chair of the Institute for Supply Management^® (ISM^®) Services Business Survey Committee: "In September, the Services PMI^® registered 54.9 percent, a decrease of 0.5 percentage point compared to August's figure of 55.4 percent. The Business Activity Index remained in expansion territory in September, decreasing 5.2 percentage points to 56.5 percent from August's reading of 61.7 percent. The New Orders Index registered 59.8 percent, 1.1 percentage points below August's figure of 60.9 percent. The Employment Index moved into expansion territory for the first time in three months with a reading of 50.1 percent, a 2.3-percentage point increase from the 47.8 percent recorded in August.

"The Supplier Deliveries Index registered 53.2 percent, 1.9 percentage points higher than the 51.3 percent recorded in August. This is the 22nd consecutive month that the index has been in expansion territory, indicating slower supplier delivery performance. (Supplier Deliveries is the only ISM^® PMI^® Reports index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

"The Prices Index registered above 70 percent for the sixth time in seven months; the reading of 74 percent in September is 1.4 percentage points above August's figure of 72.6 percent and the highest since July 2022 (74.5 percent). The index has exceeded 60 percent for 22 straight months, and its 12-month average increased by 0.5 percentage point to 69 percent, the highest since March 2023.

"The Inventories Index registered 57.8 percent, up 1.1 percentage points from August's figure of 56.7 percent. The Inventory Sentiment Index expanded for the 41st consecutive month, registering 51.7 percent, down 2.4 percentage points from August's figure of 54.1 percent. The Backlog of Orders Index remained in expansion territory for an eighth straight month, increasing one percentage point to 56.6 percent in September from August's reading of 55.6 percent. The New Export Orders dropped below 50 percent for the first time in eight months, registering 46.9 percent, a decrease of 9.4 percentage points from the 56.3 percent recorded in August. The Imports Index recorded a third straight month in expansion territory; the figure of 52.9 percent in September is a decrease of 3.4 percentage points compared to the 56.3 percent registered in August.

"Thirteen industries indicated growth in September, one more than the previous month, while four reported contraction, one fewer than in August. The September Services PMI^® reading of 54.9 percent is 0.8 percentage point above the 12-month average of 54.1 percent. The uptick of 0.4 percentage point over August's 12-month average of 53.7 percent marks the ninth straight month that figure has increased."

Miller continues, "Lumber and pork products were the only commodities reported as down in price in September, with fuel reported as up in price for an eighth month in a row. Petroleum-related products, diesel and gasoline were again reported as up in price in September, as was memory products for the ninth month in a row. The number of commodities in short supply increased from six to seven, with switchgear and computers and related products being notable additions. The Supplier Deliveries Index continued to indicate slower performance, reversing a four-month decline with an increase to 53.2 percent but still below its 12-month average of 53.7 percent.

"The Employment Index (50.1 percent) returned to slight expansion after two months in contraction while also moving above its 12-month average of 49 percent. The New Orders and Backlog of Orders indexes were also above their 12-month averages.

"Tariffs and fuel cost impacts were the most cited issues impacting respondents' supply chains; in fact, fuel costs were mentioned twice as often as any other single issue impacting performance. Supply chain constraints were also a top concern of respondents and were impacting both lead times and costs. The Employment Index's first reading above 50 percent in three months seems to have resulted from increasing backlogs, as well as high levels of business activity and new orders. Although business activity and new orders growth rates have eased a bit, the Backlog of Orders index hit its highest level since July 2022 (58.3 percent)."

INDUSTRY PERFORMANCE
The 13 services industries reporting growth in September — listed in order — are: Wholesale Trade; Real Estate, Rental & Leasing; Other Services; Public Administration; Retail Trade; Educational Services; Utilities; Information; Transportation & Warehousing; Finance & Insurance; Accommodation & Food Services; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The four industries reporting a contraction in the month of September are: Agriculture, Forestry, Fishing & Hunting; Mining; Construction; and Management of Companies & Support Services.

WHAT RESPONDENTS ARE SAYING

• "The high cost of diesel fuel has increased the cost of freight dramatically. The high cost is hard on farmers due to the high use of diesel fuel at harvest. The high cost of crude oil has driven nitrogen (for agronomic use) prices to near record highs." [Agriculture, Forestry, Fishing & Hunting]
• "Interest rates continue to drive buyers out of the market. Half of buyers walking through the door cannot qualify to purchase." [Construction]
• "Increased competition for deposits and higher funding costs are placing pressure on profitability and moderating growth expectations. Although projections have been revised downward, the bank continues to expect modest growth in both loans and deposits." [Finance & Insurance]
• "Had vendor communications about more fuel charges and possible tariff reinstatement." [Health Care & Social Assistance]
• "Demand across commercial client segments remains steady through September, though client decision cycles on discretionary capital projects remain cautious. Wage pressures and software licensing renewals continue to push operational expenses slightly higher, but freight and consumable material lead times have normalized." [Information]
• "Oil and gas prices are still high, which encourages more production." [Mining]
• "The cost of fuel continues to impact our cost of providing services." [Other Services]
• "Shipping containers from overseas are double the cost, causing price increases." [Retail Trade]
• "Business activity remains strong, but supply chain conditions continue to be challenging. Utilities and materials are experiencing slower availability, with steel particularly difficult to source domestically. We are increasingly having to place orders internationally to secure required materials. Strong business demand is putting additional pressure on supply, contributing to longer lead times, material availability issues and delays in project starts." [Utilities]
• "Demand remains very strong. Manufacturers have very little breathing room to keep up with demand, and in some cases, typical lead times have slipped. They are not as aggressive on all opportunities and eager to cut prices to secure business. Weekly price increases are the norm these days on commodities products (copper, aluminum and polyvinyl chloride). We are constantly reaching out to any and all suppliers we conduct business with to secure product to meet customer demand." [Wholesale Trade]

ISM^® Services PMI^® Report data is seasonally adjusted for the Business Activity, New Orders, Employment and Prices indexes. ISM^® Manufacturing PMI^® Report data is seasonally adjusted for New Orders, Production, Employment and Inventories indexes.
*Number of months moving in current direction.

COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY

Commodities Up in Price
Aluminum Chlorohydrate; Contractors — Construction; Copper (10); Copper Based Products (2); Copper Wire; Diesel (7); Food Products (2); Fuel (8); Garage Doors; Gasoline (8); Labor; Lumber*; Memory Products (9); Office Supplies; Petroleum Based Products (5); Software — Licensing (8); Steel; Steel Products (6); Switchgear; and Wire and Cable.

Commodities Down in Price
Lumber*; and Pork Products.

Commodities in Short Supply
Computers and Related Products; Fuel; Memory Components (9); Solid State Drives (SSDs); Steel Products (4); Switchgear; and Wire and Cable (4).

Note: The number of consecutive months the commodity is listed is indicated after each item.
*Indicates both up and down in price.

SEPTEMBER 2026 SERVICES INDEX SUMMARIES

Services PMI^®
In September, the Services PMI^® registered 54.9 percent, 0.8 percentage point above its 12-month moving average of 54.1 percent. A reading above 50 percent indicates the services sector economy is generally expanding; below 50 percent indicates it is generally contracting.

A Services PMI^® above 48.1 percent, over time, generally indicates an expansion of the overall economy. Therefore, the September Services PMI^® indicates the overall economy is expanding for the 76th straight month. Miller says, "The past relationship between the Services PMI^® and the overall economy indicates that the Services PMI^® for September (54.9 percent) corresponds to a 2.1-percentage point increase in real gross domestic product (GDP) on an annualized basis."

SERVICES PMI^® HISTORY

Business Activity
ISM^®'s Business Activity Index continued in expansion in September; the reading of 56.5 percent is 5.2 percentage points lower than the 61.7 percent recorded in August. September's reading is 0.2 percentage point below the index's 12-month moving average of 56.7 percent; however, its 12-month moving average increased 0.5 percentage point from August's 56.2 percent. Comments from respondents include: "Urgent requests around AI and cybersecurity" and "Home sales are slowing as mortgage rates increase and inventory shrinks."

The 12 industries reporting an increase in business activity for the month of September — listed in order — are: Other Services; Public Administration; Retail Trade; Information; Transportation & Warehousing; Real Estate, Rental & Leasing; Wholesale Trade; Utilities; Educational Services; Finance & Insurance; Professional, Scientific & Technical Services; and Health Care & Social Assistance. The three industries reporting a decrease in business activity in the month of September are: Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; and Construction.

New Orders
ISM^®'s New Orders Index remained in expansion territory at 59.8 percent in September, 1.1 percentage points lower than the reading of 60.9 percent in August. The index has expanded for 16 consecutive months. Comments from respondents include: "An increase of 9.2 percent in order volume was mainly driven by wholesale surge in preparation for holiday season" and "Fewer reservations."

The 13 industries reporting an increase in new orders for the month of September — listed in order — are: Real Estate, Rental & Leasing; Wholesale Trade; Retail Trade; Public Administration; Other Services; Utilities; Health Care & Social Assistance; Educational Services; Management of Companies & Support Services; Finance & Insurance; Information; Transportation & Warehousing; and Professional, Scientific & Technical Services. For the second month in a row, the only industry reporting a decrease in new orders in the month of September is Construction.

Employment
Employment activity in the services sector returned to expansion in September, as the index registered 50.1 percent. The reading is up 2.3 percentage points from the August figure of 47.8 percent and is 1.1 percentage points above the index's 12-month average of 49 percent. Comments from respondents include: "Filling positions that have been vacated due to promotions or retirements" and "Restructuring due to efficiencies gained using AI tools."

The seven industries reporting an increase in employment in September — listed in order — are: Accommodation & Food Services; Wholesale Trade; Educational Services; Real Estate, Rental & Leasing; Transportation & Warehousing; Retail Trade; and Professional, Scientific & Technical Services. The eight industries reporting a decrease in employment in September — listed in order — are: Management of Companies & Support Services; Mining; Agriculture, Forestry, Fishing & Hunting; Health Care & Social Assistance; Construction; Utilities; Finance & Insurance; and Public Administration.

Supplier Deliveries
In September, the Supplier Deliveries Index indicated slower performance for the 22nd month in a row. The index registered 53.2 percent, up 1.9 percentage points from the 51.3 percent recorded in August. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries. Comments from respondents include: "Experienced more back orders" and "Supplier lead times are extending due to tariff related delays."

The 11 industries reporting slower deliveries in September — in the following order — are: Accommodation & Food Services; Utilities; Construction; Health Care & Social Assistance; Management of Companies & Support Services; Finance & Insurance; Wholesale Trade; Information; Public Administration; Professional, Scientific & Technical Services; and Transportation & Warehousing. The only industry reporting faster deliveries in September is Retail Trade. Six industries reported no change in supplier deliveries in September.

Inventories
The Inventories Index expanded for the eighth month in a row, registering 57.8 percent, a 1.1-percentage point increase compared to the 56.7 percent reported in August. Of the total respondents in September, 29 percent indicated they do not have inventories or do not measure them. Comments from respondents include: "Additional inventory purchased — hedging against price increases" and "Lower inventory levels due to lower lumber pricing and negotiated price decreases."

The nine industries reporting an increase in inventories in September — in the following order — are: Public Administration; Other Services; Professional, Scientific & Technical Services; Real Estate, Rental & Leasing; Educational Services; Transportation & Warehousing; Wholesale Trade; Construction; and Health Care & Social Assistance. The two industries reporting a decrease in inventories in September are: Agriculture, Forestry, Fishing & Hunting; and Retail Trade. Seven industries reported no change in inventories in September.

Prices
Prices paid by services organizations for materials and services increased in September for the 112th consecutive month. The Prices Index registered 74 percent, an increase of 1.4 percentage points from August's reading of 72.6 percent. September's reading is its highest since July 2022 (74.5 percent).

Seventeen industries reported an increase in prices paid during the month of September, in the following order: Management of Companies & Support Services; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Other Services; Real Estate, Rental & Leasing; Utilities; Construction; Professional, Scientific & Technical Services; Accommodation & Food Services; Information; Public Administration; Wholesale Trade; Educational Services; Mining; Finance & Insurance; Health Care & Social Assistance; and Retail Trade. No industries reported a decrease in prices paid.

NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.

Backlog of Orders
The ISM^® Services Backlog of Orders Index registered 56.6 percent, a 1-percentage point increase compared to the 55.6 percent reported in August. The index has been in expansion territory for eight straight months, its longest continuous growth since a string of 26 months that ended in February 2023. Of the total respondents in September, 31 percent indicated they do not measure backlog of orders. Respondent comments include: "Tariffs are continuing to have an effect on when we can get our equipment; lead times are longer and any additional cost affects the bottom line" and "Workload has exceeded manpower."

The 10 industries reporting an increase in order backlogs in September — in the following order — are: Other Services; Real Estate, Rental & Leasing; Finance & Insurance; Retail Trade; Educational Services; Transportation & Warehousing; Health Care & Social Assistance; Professional, Scientific & Technical Services; Utilities; and Wholesale Trade. The four industries reporting a decrease in order backlogs in September are: Management of Companies & Support Services; Information; Agriculture, Forestry, Fishing & Hunting; and Construction.

New Export Orders
Orders and requests for services and other non-manufacturing activities to be provided outside of the U.S. by domestically based companies contracted in September. The New Export Orders Index registered 46.9 percent, down 9.4 percentage points compared to the August reading of 56.3 percent. Of the total respondents in September, 39 percent indicated they do not perform, or do not separately measure, orders for work outside of the U.S. Respondent comments include: "Growth in Latin America and Asia-Pacific regions" and "Uncertainties due to delayed shipments and rising surcharges."

The three industries reporting an increase in new export orders in September are: Retail Trade; Health Care & Social Assistance; and Wholesale Trade. The six industries reporting a decrease in new export orders in September, in order, are: Accommodation & Food Services; Public Administration; Information; Finance & Insurance; Professional, Scientific & Technical Services; and Utilities. Nine industries reported no change in exports in September.

Imports
The Imports Index was in expansion territory in September for the third consecutive month and the sixth time in seven months, registering 52.9 percent, 3.4 percentage points lower than the 56.3 percent reported in August. Of the total respondents in September, 37 percent reported that they do not use, or do not track the use of, imported materials. Respondent comments include: "Canola meal from Canada is no longer competitive" and "U.S.-Canada duties change impacting imports/exports."

The six industries reporting an increase in imports for the month of September, in order, are: Public Administration; Retail Trade; Information; Professional, Scientific & Technical Services; Utilities; and Wholesale Trade. The three industries reporting a decrease in imports in September are: Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; and Educational Services. Nine industries reported no change in imports in September.

Inventory Sentiment
The ISM^® Services Inventory Sentiment Index was in expansion (or "too high") territory for the 41st consecutive month in September; the reading of 51.7 percent is a decrease of 2.4 percentage points compared to August's figure of 54.1 percent. This reading indicates that respondents feel their companies' inventory levels are too high when correlated to business requirements.

The nine industries reporting sentiment that their inventories were too high in September, in order, are: Mining; Accommodation & Food Services; Other Services; Wholesale Trade; Utilities; Public Administration; Educational Services; Transportation & Warehousing; and Retail Trade. The four industries reporting a decrease in inventory sentiment in September are: Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Professional, Scientific & Technical Services; and Information.

About This Report
DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of September 2026.

The data presented herein is obtained from a survey of supply executives in the services sector based on information they have collected within their respective organizations. ISM^® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

Data and Method of Presentation
The ISM^® Services PMI^® Report (formerly the Non-Manufacturing ISM^® Report On Business^®) is based on data compiled from purchasing and supply executives nationwide. Membership of the Services Business Survey Panel (formerly Non-Manufacturing Business Survey Committee) is diversified by the North American Industry Classification System (NAICS), based on each industry's contribution to gross domestic product (GDP). The Services Business Survey Panel responses are divided into the following NAICS code categories: Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation & Warehousing; Information; Finance & Insurance; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Educational Services; Health Care & Social Assistance; Arts, Entertainment & Recreation; Accommodation & Food Services; Public Administration; and Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services). The data are weighted based on each industry's contribution to GDP. According to U.S. Bureau of Economic Analysis (BEA) estimates (the average of the fourth quarter 2024 GDP estimate and the GDP estimates for first, second, and third quarter 2025, as released on January 22, 2026), the six largest services sectors are: Real Estate, Rental & Leasing; Public Administration; Professional, Scientific, & Technical Services; Health Care & Social Assistance; Information; and Finance & Insurance.

Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory Sentiment, Imports, Prices, Employment and Supplier Deliveries), this report shows the percentage reporting each response and the diffusion index. Responses represent raw data and are never changed. Data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The remaining indexes have not indicated significant seasonality.

The Services PMI^® is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. An index reading above 50 percent indicates that the services economy is generally expanding; below 50 percent indicates that it is generally declining. Supplier Deliveries is an exception. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.

A Services PMI^® above 48.1 percent, over time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.1 percent, it is generally declining. The distance from 50 percent or 48.1 percent is indicative of the strength of the expansion or decline.

The ISM^® Services PMI^® Report survey is sent out to Services Business Survey Panel respondents in the first part of each month. Respondents are asked to ONLY report on U.S. operations for the current month. ISM^® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to give the most accurate picture of current business activity. ISM^® then compiles the report for release on the third business day of the following month.

The industries reporting growth, as indicated in the ISM^® Services PMI^® Report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.

ISM PMI^® Content

The Institute for Supply Management^® ("ISM^®") PMI^® Reports, formerly Report On Business^®, (Manufacturing and Services reports) ("ISM PMI^®") contain information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, "Content") of ISM ("ISM PMI^® Content"). ISM PMI^® Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM PMI^® Content. ISM hereby grants you a limited, revocable, nonsublicensable license to access and display on your individual device the ISM PMI^® Content (excluding any software code) solely for your personal, non-commercial use. The ISM PMI^® Content shall also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM PMI^® Content.

Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including but not limited to tables, charts, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM PMI^® Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered or given away. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit.

You shall not create, recreate, distribute, incorporate in other work or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM PMI^® Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 350 W. Washington St., Suite 301, Tempe, AZ 85288-1495, or by emailing [email protected]; Subject: Content Request.

ISM shall not have any liability, duty or obligation for or relating to the ISM PMI^® Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM PMI^® Content or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages arising out of the use of the ISM PMI^®. Report On Business^®, PMI^®, Manufacturing PMI^® and Services PMI^® are registered trademarks of Institute for Supply Management^®. Institute for Supply Management^® and ISM^® are registered trademarks of Institute for Supply Management, Inc.

About Institute for Supply Management^®
ISM is the world's first professional association for supply chain — founded in 1915, before the term 'supply chain' was widely used. We didn't enter this profession. We helped shape it. Today, we're a community of over 200,000 professionals in more than 100 countries — early-career practitioners building credentials, experienced leaders seeking strategic insight, and organizations developing their procurement teams that drive their business forward. What connects us is a shared belief that supply chain is strategic work that deserves world-class support. For more information, please visit: https://www.ismworld.org.

The full text version of the ISM^® Services PMI^® Report is posted on ISM^®'s website at www.ismrob.org on the third business day* of every month after 10:00 a.m. ET. The one exception is in January, the report is released on the fourth business day of the month.

The next ISM^® Services PMI^® Report featuring October 2026 data will be released at 10:00 a.m. ET on Wednesday, November 4, 2026.

*Unless the New York Stock Exchange is closed.

SOURCE Institute for Supply Management

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