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ISM Services PMI Hits 56.1 Amid Eased Inflation

3/5/2026

38 8 Full Breakdown

Summary

Story summary

In February 2026, the ISM Services PMI rose to 56.1, the highest since July 2022.
The increase reflects the 20th consecutive month of expansion, driven by strong new orders and activity.
Inflation pressures eased in services.
Manufacturing costs rose.
Geopolitical tensions from U.S.-Israeli actions in Iran raise concerns about tourism and large IT projects.

History

Historical Context

The ISM Services PMI, first published in 1997, serves as a key economic indicator reflecting the U.S. service sector's health, which contributes approximately 80% of GDP. In 2021, the PMI reached 63.7, signaling strong recovery from the COVID-19 pandemic. However, geopolitical tensions, particularly U.S.-Israeli actions in Iran, threaten ongoing economic resilience, highlighting the fragility of growth amid international conflicts.

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Story summary

In February 2026, the ISM Services PMI rose to 56.1, the highest since July 2022.
The increase reflects the 20th consecutive month of expansion, driven by strong new orders and activity.
Inflation pressures eased in services.
Manufacturing costs rose.
Geopolitical tensions from U.S.-Israeli actions in Iran raise concerns about tourism and large IT projects.

1 / 2