Back to news
United States · Inflation & data · Source: Institute for Supply Management (PR Newswire)
US services PMI dips to 54.5 in October; ISM prices index edges down to a still-high 73.0
Published
Editor: Hedal Kolanyi / AI-assisted
Corrections: none so far. Spotted an error? Tell us via the Contact page.
Summary: The Institute for Supply Management's services index slipped to 54.5 in October from 54.9 in September, still signalling growth for a 28th straight month. New orders and business activity slowed, while the prices index stayed far above the level that marks stable prices.
What happened
ISM, a supply-management association, released its monthly survey of services firms on 4 November at 10:00 am Eastern Time. The headline Services PMI was 54.5; readings above 50 indicate expansion. The business activity index fell 2.7 points to 53.8 and the new orders index fell 3.9 points to 55.9. The employment index rose 1.3 points to 51.4, its second month above 50.
Supplier deliveries slowed further (56.7, where above 50 means slower), and the backlog of orders rose to 58.0, which ISM says is the highest since July 2022. The prices index eased only one point to 73.0, and ISM says prices paid have risen for 113 months in a row. New export orders returned to growth at 55.2 after a contraction in September. Fifteen industries reported growth; construction and health care and social assistance reported contraction.
Background
ISM's survey chair said tariffs and fuel costs remained the issues respondents cited most often as affecting their supply chains, and that many respondents said they are not yet seeing the full impact of these cost increases or have not passed them on to customers. In his assessment, this indicates more pricing pressure is on the way if oil and tariff cost impacts are not mitigated; that is ISM's view, not ours. According to Reuters, economists polled had expected a reading of 54.8. Reuters added that economists expect consumer spending to slow, partly because high inflation is eroding household purchasing power. Reuters also reported that the Federal Reserve held its rate at 3.75%–4.00% last week.
Why it matters for markets and crypto
Reuters notes that services account for more than two-thirds of US economic activity, so the survey is one of the early signals of how the economy started the fourth quarter. Growth that is solid but accompanied by high input prices is the kind of mix that central banks weigh when setting interest rates, and rate expectations in turn influence borrowing costs and risk appetite across financial markets. This article does not discuss any specific asset. The data relates to the wider economy.
What to watch next
- 6 November: The US government's October employment report. Reuters says its poll of economists expects payrolls up 65,000 and unemployment at 4.2%; these are forecasts, not results.
- 3 December: ISM's next Services PMI report, covering November, at 10:00 am Eastern Time.
Sources
- ISM, October 2026 Services PMI Report (via PR Newswire, 4 November 2026)
- Reuters via Investing.com, 4 November 2026 (US services sector report)
Disclaimer: Xorchain Economy news is provided for general information only. It is not financial, investment, legal or tax advice, and it is not an offer or recommendation to buy, sell or hold any asset. Articles are written in our own words from official and other public sources, which are credited and linked at the end of each article. Short quotes are attributed to their authors. Articles are prepared with AI assistance and reviewed by the editor before publication. Figures may be revised by the source, and the original publication prevails. Xorchain is an early-stage project, has no token for sale, and has no affiliation with the institutions mentioned unless stated. Do your own research and consult a qualified adviser before making financial decisions.
Conflict of interest: xorchain.io is an early-stage blockchain project; the author has an interest in it. This is not investment advice.