FX.co ★ U.S. Services Momentum Cools as ISM Non-Manufacturing Activity Slips in October

Business activity in the U.S. services sector lost some steam in October, according to the latest ISM Non-Manufacturing Business Activity index. The indicator eased to 53.8 in October 2026, down from 56.5 in September 2026, signaling slower—though still positive—growth in the country’s dominant services industry.

The reading, updated on 4 November 2026, remains above the 50-point threshold that separates expansion from contraction, indicating that services activity continues to grow, albeit at a more moderate pace. The deceleration suggests that while demand is holding up, the sector may be encountering early signs of cooling after a stronger September performance.

Investors and policymakers will be watching upcoming data closely to gauge whether October’s softer reading marks the beginning of a broader slowdown in services, or simply a pause following recent strength in the non-manufacturing economy.