FX.co ★ US Services Growth Accelerates

The ISM Services PMI rose to 55.4 in August 2026 from 54.1 in July, exceeding expectations of 54.3 and signaling the strongest expansion in the services sector in six months. Business activity (61.7 vs. 59.1), new orders (60.9 vs. 57.2), and inventories (56.7 vs. 51.4) all accelerated, while the backlog of orders also increased (55.6 vs. 50.9), with some respondents linking this to insufficient staffing.

In contrast, employment contracted for a second consecutive month (47.8 vs. 47.4), and price pressures intensified to a four-year high (72.6 vs. 70.3), with higher prices reported for petroleum-related products, diesel, and gasoline in August. The supplier deliveries index continued to signal slower performance, though at a slightly improved pace (51.3 vs. 52.8).

“Tariffs and the Middle East conflict returned as the most cited issues impacting respondents’ supply chains,” said Steve Miller, Chair of the ISM Services Business Survey Committee.