FX.co ★ U.S. Services Activity Cools in September as ISM Non-Manufacturing Index Slips From August Peak

The U.S. services sector showed signs of cooling in September, as the ISM Non-Manufacturing Business Activity index declined to 56.5, down from 61.7 in August 2026. The latest reading, updated on 5 October 2026, indicates that while the services economy continues to expand, the pace of growth has moderated from the strong momentum seen a month earlier.

The drop from August’s 61.7 suggests a tempering in business activity across key service industries, even as the index remains above the 50-point threshold that separates expansion from contraction. This easing may reflect a normalization after a period of particularly robust growth rather than an outright weakening of the sector.

Investors and policymakers are likely to watch upcoming data closely to determine whether September’s pullback marks the beginning of a broader deceleration in services, or a temporary pause within an overall expansionary trend in the U.S. economy.