FX.co ★ US Services Activity Stalls in September: ISM

The ISM Services PMI declined to 50 in September 2025, down from 52 in August, and fell short of the projected 51.7, indicating that growth in the services sector has stagnated. Business activity remained nearly unchanged at 49.9 compared to 55 previously, while new orders experienced a slowdown (50.4 compared to 56), and inventories shifted into contraction territory (47.8 compared to 53.2). Furthermore, employment continued to contract, evidenced by a reading of 47.2 from 46.5, driven by delayed hiring strategies and challenges in finding suitably qualified candidates. Price pressures intensified, with the prices index reaching 69.4, marking the second-highest level since October 2022. Moreover, the supplier deliveries index at 52.6 compared to 50.3 signaled the slowest supplier delivery performance since February. However, there was a positive note as the rate of contraction in the backlog of orders slowed down (47.3 compared to 40.4). During September, 10 industries reported growth, which is two fewer than in August, while those reporting contraction increased from four to seven.