In a notable shift, the ISM Non-Manufacturing New Orders Index for the United States slumped significantly during the month of September 2025, reflecting a cooling in the service sector. After a robust showing of 56.0 in August, the index has sharply dipped to 50.4, according to data updated on October 3, 2025.
This decrease marks a significant turnaround in the pace of growth for new orders within the service sector, which includes industries ranging from retail and hospitality to finance and health care. The ISM Non-Manufacturing New Orders Index, an important indicator of service sector health, shows any reading above 50 suggests growth, whereas readings below 50 indicate contraction.
The nearly six-point drop from August’s figures may raise concerns about potential headwinds facing service industries, such as changing consumer spending patterns or supply chain disruptions. As September's figures stand at the brink of stagnation, economic analysts and policymakers will be carefully monitoring upcoming data releases to assess whether this trend signifies a temporary correction or indicates more persistent challenges.
