ISM Services PMI Expanded for Seventh Straight Month in January

The Institute for Supply Management (ISM) released its January Services Purchasing Managers' Index (PMI), with the headline composite index at 52.8—below the forecast of 54.2. Despite the miss, the reading marks the seventh consecutive month of expansion.

Here is an excerpt from the report summary:

Miller continues, “January was the second month in a row with all four subindexes that directly factor into the Services PMI® — Business Activity, New Orders, Employment and Supplier Deliveries — in expansion territory. Slower growth in the Business Activity and New Orders indexes led to the lower composite index reading. Poor weather conditions were highlighted by many respondents as impacting business levels and production. Like last month, many panelists also mentioned preparations or concerns related to potential U.S. government tariff actions; however, there was little mention of current business impacts as a result.”

Here is a table showing the PMI's components.

ISM Services PMI Components