--- title: US ISM Services PMI Reaches 54.5 in October 2026 description: US ISM Services PMI reached 54.5 in October 2026, marking 28 months of sector expansion as employment strengthened while price pressures remained high. url: https://ginity.vn/en/blog/us-ism-services-pmi-october-2026-reaches-54-5 canonical: https://ginity.vn/en/blog/us-ism-services-pmi-october-2026-reaches-54-5 markdown: https://ginity.vn/en/blog/us-ism-services-pmi-october-2026-reaches-54-5.md language: en datePublished: 2026-11-05T00:00:00+07:00 dateModified: 2026-11-05T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: macro name: Macro & monetary url: https://ginity.vn/en/topics/macro tickers: [] sources: - name: Series Insight url: https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/ title: Services PMI at 54.5% October 2026 ISM Services PMI Report - name: Haver Analytics url: https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month title: U.S. ISM Services PMI at a Three-Month Low, Still Indicating Expansion for the 28th Straight Month - name: Federal Reserve Board url: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm title: Federal Open Market Committee Meeting Calendars - name: Báo Điện tử Chính phủ url: https://baochinhphu.vn/nhnn-noi-bien-do-ti-gia-them-2-102221017112816346.htm title: NHNN nới biên độ tỉ giá thêm 2% - name: Báo Điện tử Chính phủ url: https://baochinhphu.vn/ty-gia-lai-suat-va-bai-toan-giu-diem-can-bang-cho-kinh-te-viet-nam-10226081819370917.htm title: Tỷ giá, lãi suất và bài toán giữ điểm cân bằng cho kinh tế Việt Nam - name: General Statistics Office url: https://www.nso.gov.vn/bai-top/2026/11/bao-cao-tinh-hinh-kinh-te-xa-hoi-thang-muoi-va-10-thang-nam-2026/ title: Socio-economic situation report for October and 10 months of 2026 - name: Ministry of Industry and Trade url: https://moit.gov.vn/tin-tuc/cuc-truong-cuc-xuat-nhap-khau-nguyen-anh-son-noi-ve-bai-toan-nang-tam-hang-viet-sau-dau-moc-1.000-ty-usd.html title: Director General of Agency of Foreign Trade on elevating Vietnamese exports publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # US ISM Services PMI Reaches 54.5 in October 2026 > US ISM Services PMI reached 54.5 in October 2026, marking 28 months of sector expansion as employment strengthened while price pressures remained high. Gini · Macro & monetary · 2026-11-05 · https://ginity.vn/en/blog/us-ism-services-pmi-october-2026-reaches-54-5 _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - The US ISM Services PMI registered 54.5 in October 2026, sustaining sector expansion for the 28th consecutive month. - The Employment Index rose to 51.4 in October 2026, reaching its highest level since February 2026. - The Prices Index remained elevated at 73.0 in October 2026, indicating continued input cost pressures across services. - Fifteen services industries reported growth while order backlogs accelerated to 58.0 in October 2026. On November 4, 2026, the Institute for Supply Management (ISM) released the results of its October 2026 services sector survey. The headline composite ISM Services PMI registered 54.5 percent, a slight decrease of 0.4 percentage point from September's 54.9 percent reading, according to the official report syndicated on [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/). While marginally below the 54.7 consensus expectation compiled by the Action Economics Forecast Survey, the 54.5 print confirmed that the services sector expanded for the 28th consecutive month. The report follows initial market observations discussed in the [release preview](/en/blog/us-ism-services-pmi-october-2026-release-preview) and complements recent industrial data from the [US ISM Manufacturing PMI for October 2026](/en/blog/us-ism-manufacturing-pmi-october-2026). Breaking down the underlying survey responses provides clarity regarding business demand, staffing requirements, logistics performance, and sticky input cost developments across the world's largest economy. ## Headline Results and 28 Consecutive Months of Growth Survey results presented on November 4, 2026, by the leadership of the ISM Services Business Survey Committee established that the services sector expanded at 54.5 in October 2026, as documented and reported by [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/). This milestone represents 28 straight months of sector growth above the 50.0 dividing line and marks the 77th consecutive month of expansion for the broader US economy. According to historical tracking reported by [Haver Analytics](https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month), the 54.5 October figure brought the trailing 12-month average for the Services PMI to 54.3. Historically, a sustained Services PMI reading of 54.5 corresponds to an annualized increase of approximately 2.0 percentage points in real gross domestic product (GDP). When integrated with manufacturing survey performance, the composite index covering both services and goods production slipped to 54.6 in October 2026 from 54.9 in September 2026. Within the October 2026 survey pool, 15 services industries registered expansion, led by Transportation & Warehousing, Wholesale Trade, Information, Retail Trade, and Finance & Insurance, based on industry metrics published and reported by [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/). In contrast, only two industries reported contraction during the month: Construction along with Health Care & Social Assistance. ## The Four Core Diffusion Components in October 2026 The composite Services PMI is derived from four equally weighted diffusion components, with each category contributing exactly 25 percent to the headline figure. Divergent movements across these four pillars characterized the October 2026 survey results compiled and reported by [Haver Analytics](https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month). According to survey data reported by [Haver Analytics](https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month), the Business Activity Index recorded 53.8 in October 2026, retreating 2.7 percentage points from 56.5 in September 2026 and marking its slowest rate of expansion since September 2025. Among survey respondents, 20.8 percent indicated higher activity levels while 11.4 percent reported a decline. According to the survey published and reported by [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/), the New Orders Index registered 55.9 in October 2026, dropping 3.9 percentage points from 59.8 in September 2026. Despite the deceleration, new bookings maintained growth for the 17th consecutive month, with 26.1 percent of survey participants seeing higher order volumes and 9.0 percent reporting lower intake. According to employment metrics reported by [Haver Analytics](https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month), the Employment Index expanded 1.3 percentage points to 51.4 in October 2026, up from 50.1 in September 2026. This print established a second consecutive month above the 50.0 threshold and the strongest employment reading since February 2026, supported by 16.6 percent of firms adding staffing compared to 13.5 percent reducing staffing. According to survey metrics reported by [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/), the Supplier Deliveries Index reached 56.7 in October 2026, advancing 3.5 percentage points from 53.2 in September 2026. Because this metric operates as an inverted diffusion index where readings above 50 reflect slower deliveries, the result signaled lengthening lead times for the 23rd consecutive month due to transportation bottlenecks and sustained volume throughput. > Chart: Four composite diffusion indexes of the ISM Services PMI in October 2026. index points. Business activity: 53.8; New orders: 55.9; Employment: 51.4; Supplier deliveries: 56.7. ## Formula Mechanics and Worked Survey Calculation The headline Services PMI calculation applies an equal arithmetic average across its four core survey pillars, ensuring each component carries an exact 25 percent weighting. The mathematical structure of the composite index is expressed as: $$\text{Services PMI} = \frac{\text{Business Activity} + \text{New Orders} + \text{Employment} + \text{Supplier Deliveries}}{4}$$ Applying the official survey values published on November 4, 2026, by [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/), substituting each component produces: $$\text{Services PMI} = \frac{53.8 + 55.9 + 51.4 + 56.7}{4} = \frac{217.8}{4} = 54.45 \approx 54.5\%$$ The following table presents an overview of the primary survey measures for October 2026 contrasted with September 2026 figures: | Survey Metric | October 2026 | September 2026 | Change (pp) | Directional Status | | :--- | :---: | :---: | :---: | :--- | | Services PMI | 54.5 | 54.9 | -0.4 | Growing (28th straight month) | | Business Activity | 53.8 | 56.5 | -2.7 | Slower growth | | New Orders | 55.9 | 59.8 | -3.9 | Growing (17th straight month) | | Employment | 51.4 | 50.1 | +1.3 | Growing (highest since February 2026) | | Supplier Deliveries | 56.7 | 53.2 | +3.5 | Slower deliveries | | Prices Paid | 73.0 | 74.0 | -1.0 | Increasing (above 70) | | Backlog of Orders | 58.0 | 56.6 | +1.4 | Accelerating (highest since July 2022) | | New Export Orders | 55.2 | 46.9 | +8.3 | Rebounded into expansion | | Imports | 54.2 | 52.9 | +1.3 | Growing | | Inventories | 55.4 | 57.8 | -2.4 | Slower expansion | | Inventory Sentiment | 52.1 | 51.7 | +0.4 | Too high (42nd straight month) | Source: Survey metrics published and reported by [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/) and [Haver Analytics](https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month) on November 4, 2026. While the composite components determine the headline trajectory, secondary survey measures deliver essential signals regarding pipeline strain and cost pressures. ## Persistent Input Costs and Backlog Pressures Market attention centered heavily on the Prices Index in the October 2026 release. Although edging lower by 1.0 percentage point from 74.0 in September 2026 to 73.0 in October 2026, the index remained above 70 for the 7th time in 8 months, according to data reported by [Haver Analytics](https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month). According to survey breakdowns published and reported by [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/), 48.6 percent of purchasing executives paid higher prices for materials and services in October 2026, while only 4.0 percent reported price reductions. The 12-month moving average for the price metric reached 69.2. Commodities reported up in price included fuel and memory products, whereas zero commodities were reported down in price during the month. According to data published and reported by [Haver Analytics](https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month), the Backlog of Orders Index advanced 1.4 percentage points to 58.0 in October 2026, following a 56.6 reading in September 2026. This figure marked the fastest pace of backlog accumulation since July 2022, underscoring that work volume continues to exceed near-term completion capacities. Concurrently, according to survey results reported by [Series Insight](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/), the New Export Orders Index rebounded sharply by 8.3 percentage points to 55.2 in October 2026 after contracting at 46.9 in September 2026. The Imports Index also progressed to 54.2 in October 2026 from 52.9 in September 2026, confirming that international cross-border transactions remained active across service organizations. ## Industry Breakdown and Conditional Macro Channels Because the services sector generates more than two-thirds of US economic output, enduring service activity paired with elevated prices at 73.0 provides crucial reference conditions for monetary authorities. The Federal Reserve assesses ongoing inflation and employment conditions when establishing its policy interest rate target, governed by schedules published on the [Federal Reserve Board website](https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm). Under conditions where services price growth remains elevated, benchmark US dollar interest rates are conditioned to stay elevated for a longer duration. This environment shapes interest rate differentials across emerging markets, influencing external capital conditions discussed in the review of [regional forex pressures](/en/blog/fed-rate-cuts-and-regional-fx-pressures-2026). Domestically, the State Bank of Vietnam manages the USD/VND spot exchange rate within an operational band of plus or minus 5 percent around the central rate, established in October 2022 and published via the [Government e-Portal](https://baochinhphu.vn/nhnn-noi-bien-do-ti-gia-them-2-102221017112816346.htm). Balancing monetary flexibility against exchange rate stability remains an operational focus, as outlined by analytical coverage on the [Government e-Portal](https://baochinhphu.vn/ty-gia-lai-suat-va-bai-toan-giu-diem-can-bang-cho-kinh-te-viet-nam-10226081819370917.htm). Regarding trade flows, according to preliminary data released on November 3, 2026, by Vietnam's [General Statistics Office](https://www.nso.gov.vn/bai-top/2026/11/bao-cao-tinh-hinh-kinh-te-xa-hoi-thang-muoi-va-10-thang-nam-2026/), the merchandise trade balance recorded a surplus of 7.31 billion USD in October 2026; however, cumulative 10-month figures show a trade deficit of 12.07 billion USD, as 10-month merchandise imports grew 37.4 percent compared to export growth of 27.5 percent, while total trade turnover crossed the 1,000 billion USD milestone discussed by the [Ministry of Industry and Trade](https://moit.gov.vn/tin-tuc/cuc-truong-cuc-xuat-nhap-khau-nguyen-anh-son-noi-ve-bai-toan-nang-tam-hang-viet-sau-dau-moc-1.000-ty-usd.html). Monitoring subsequent monthly releases of the ISM Services PMI offers investors empirical data on US economic trends without relying on premature speculation about financial market directions. ## Sources - Series Insight: [Services PMI at 54.5% October 2026 ISM Services PMI Report](https://seriesinsight.com/services-pmi-at-54-5-october-2026-ism-services-pmi-report/) (2026-11-04) - Haver Analytics: [U.S. ISM Services PMI at a Three-Month Low, Still Indicating Expansion for the 28th Straight Month](https://www.haver.com/articles/u-s-ism-services-pmi-at-a-three-month-low-still-indicating-expansion-for-the-28th-straight-month) (2026-11-04) - Federal Reserve Board: [Federal Open Market Committee Meeting Calendars](https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm) (2026-10-30) - Báo Điện tử Chính phủ: [State Bank of Vietnam Widens Spot Exchange Rate Band](https://baochinhphu.vn/nhnn-noi-bien-do-ti-gia-them-2-102221017112816346.htm) (2022-10-17) - Báo Điện tử Chính phủ: [Exchange Rates, Interest Rates, and Macroeconomic Balancing](https://baochinhphu.vn/ty-gia-lai-suat-va-bai-toan-giu-diem-can-bang-cho-kinh-te-viet-nam-10226081819370917.htm) (2026-08-18) - General Statistics Office: [Socio-economic Report for October and 10 Months of 2026](https://www.nso.gov.vn/bai-top/2026/11/bao-cao-tinh-hinh-kinh-te-xa-hoi-thang-muoi-va-10-thang-nam-2026/) (2026-11-03) - Ministry of Industry and Trade: [Foreign Trade Agency on Trade Performance Beyond 1000 Billion USD](https://moit.gov.vn/tin-tuc/cuc-truong-cuc-xuat-nhap-khau-nguyen-anh-son-noi-ve-bai-toan-nang-tam-hang-viet-sau-dau-moc-1.000-ty-usd.html) (2026-11-03) ## Frequently asked questions ### What does the October 2026 ISM Services PMI indicate about the US economy? A reading of 54.5 indicates that the US services sector continues to expand for the 28th consecutive month, reflecting steady business activity and resilient domestic order flow. ### Which components drove the October 2026 ISM Services PMI? The composite index was driven by Business Activity at 53.8, New Orders at 55.9, Employment expanding to 51.4, and Supplier Deliveries at 56.7. ### How does the reading relate to macroeconomic conditions in Vietnam? Persistent services pricing pressures at 73.0 condition global interest rates to remain elevated for longer, requiring the State Bank of Vietnam to maintain flexible central exchange rate management within its plus or minus 5 percent corridor. --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._