ISM Services PMI Rises to 55.4% in August 2026, Showing Continued Expansion
Economic activity in the U.S. services sector continued expanding for a 26th consecutive month in August 2026, according to the latest ISM® Services PMI report. The overall index rose by 1.3 percentage points from July's reading of 54.1% to reach 55.4%. Key indicators showed strong performance: Business Activity increased to 61.7%, New Orders climbed to 60.9%, and Prices surged to a high of 72.6%, the highest since August 2022. Despite these gains, employment in the sector contracted for the second month in a row with an index reading of 47.8%. Supplier Deliveries also remained sluggish at 51.3%—indicating slower delivery performance due to increased demand—and has been above 50% (slower deliveries) for 21 consecutive months. The report highlights continued inflationary pressure, particularly in energy and commodity prices such as fuel, diesel, gasoline, GPUs, and steel. Twelve industries reported growth while five experienced contraction.
Topics: Economic Activity Employment Index ISM Services PMI New Orders Supplier Deliveries