Updated: 03-Oct-25 10:19 ET
| September ISM Non-Manufacturing Index |
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| Updated: 03-Oct-25 10:19 ET |
Highlights
- The ISM Services PMI decreased to 50.0% in September (Briefing.com consensus 51.7%) from 52.0% in August.
- The dividing line between expansion and contraction is 50.0%, so the September reading reflects services sector activity stagnating.
Key Factors
- The Business Activity/Production Index dropped to 49.9% from 55.0%. That is the first contraction in business activity since May 2020.
- The New Orders Index fell to 50.4% from 56.0%.
- The Employment Index rose to 47.2% from 46.5%. This is the fourth straight month below 50.0%.
- The Prices Index edged higher to 69.4% from 69.2%, marking the second-highest reading since October 2022 and the tenth straight month above 60.0%.
- The Supplier Deliveries Index jumped to 52.6% from 50.3%.
- The Backlog of Orders Index increased to 47.3% from 40.4%.
Big Picture
- The key takeaway from the report is that it carries some stagflation messaging for the nation's largest business sector: no growth, contracting employment, and higher inflation.
| Category | SEP | AUG | JUL | JUN | MAY |
| Non-Manufacturing ISM index | 50.0 | 52.0 | 50.1 | 50.8 | 49.9 |
| Business Activity | 49.9 | 55.0 | 52.6 | 54.2 | 50.0 |
| New Orders | 50.4 | 56.0 | 50.3 | 51.3 | 46.4 |
| Employment | 47.2 | 46.5 | 46.4 | 47.2 | 50.7 |
| Deliveries (nsa) | 52.6 | 50.3 | 51.0 | 50.3 | 52.5 |
| Inventories (nsa) | 47.8 | 53.2 | 51.8 | 52.7 | 49.7 |
| Exports (nsa) | 46.5 | 47.3 | 47.9 | 51.1 | 48.5 |
| Imports (nsa) | 49.2 | 54.6 | 45.9 | 51.7 | 48.2 |
| Prices Paid | 69.4 | 69.2 | 69.9 | 67.5 | 68.7 |