FX.co ★ US Services PMI Steadies: ISM

In January 2026, the ISM Services PMI for the United States held steady at 53.8, matching the revised figure for December and surpassing expectations of 53.5. This consistent reading indicates robust growth in the services sector, highlighted by a more rapid increase in business activity/production, which rose to 57.4 from 55.2. However, there were noticeable slowdowns in new orders (53.1 down from 56.5), employment (50.3 down from 51.7), and supplier deliveries (54.2 down from 51.8). Inventories (45.1 down from 54.2) and the backlog of orders (44 down from 42.6) continued to contract, yet price pressures intensified, rising to 66.6 from 65.1. Steve Miller, Chair of the ISM, noted, "January saw an uptick in comments on tariff impacts and uncertainty, likely influenced by annual contract renewals and geopolitical tensions. Additionally, gasoline and diesel fuel prices were reported to have decreased. With supply chain and business activity indices at their highest since October 2024, it remains crucial to monitor whether pricing increases will persist or expand."