Economic activity in the services sector continued to expand in November. The ISM Services Index indicated expansion at 52.6% for the ninth time in 2025. A value above 50 reflects expansion in the services sector while a value below 50 represents a contraction.
“In November, the Services PMI registered a reading of 52.6%, 0.2 percentage point (pp) higher than the October figure of 52.4%. The Business Activity Index continued in expansion territory in November, registering 54.5%, 0.2 pp higher than the reading of 54.3% recorded in October,” said Steve Miller, CPSM, CSCP, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee. Respondents from Real Estate, Rental & Leasing said, “Tariff uncertainty continues to add complexity to purchasing, and economic conditions remain mixed, with some indicators pointing to good prospects and others to worrying ones.
The New Orders Index registered 52.9% in November, 3.3 pp lower than the reading of 56.2% reported in October. The index has been in expansion territory in 33 of the last 35 months. Respondents from wholesale trade said, “We are anticipating demand to be consistent with what we have seen in 2025 thus far. Affordability continues to be a problem for an entire generation of buyers. We expect margins to erode as competitors fight for business. Lumber production is set to be reduced significantly, so prices should increase in 2026.”
The Inventories Index returned to expansion territory, registering 53.4%, a 3.9 pp increase compared to the 49.5% reported in October. The Inventory Sentiment Index expanded for the 31st consecutive month, registering 54.8%, down 0.7 pp from October’s figure of 55.5%. The Backlog of Orders Index was in contraction territory for the ninth month in a row, registering 49.1% in October, up 8.3 pp from October’s reading of 40.8%.
Read the ISM release.
