by Calculated Risk on 1/07/2026 10:12:00 AM

(Posted with permission). The ISM® Services index was at 54.4%, up from 52.6% the previous month. The employment index increased to 52.0%, up from 48.9%. Note: Above 50 indicates expansion, below 50 in contraction.

From the Institute for Supply Management: Services PMI® at 54.4% December 2025 ISM® Services PMI® Report

Economic activity in the services sector continued to expand in December, say the nation’s purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® registered at 54.4 percent, finishing 2025 on a positive note with its 10th month in expansion territory — and its highest reading — of the year.

The report was issued today by Steve Miller, CPSM, CSCP, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee:

“In December, the Services PMI® registered a reading of 54.4 percent, 1.8 percentage points higher than the November figure of 52.6 percent and a third consecutive month of expansion. The Business Activity Index continued in expansion territory in December, registering 56 percent, 1.5 percentage points higher than the reading of 54.5 percent recorded in November. The New Orders Index also remained in expansion in December, with a reading of 57.9 percent, 5 percentage points above November’s figure of 52.9 percent. The Employment Index expanded for the first time in seven months with a reading of 52 percent, a 3.1-percentage point improvement from the 48.9 percent recorded in November — the fifth consecutive monthly increase since a reading of 46.4 percent in July.

“The Supplier Deliveries Index registered 51.8 percent, 2.3 percentage points lower than the 54.1 percent recorded in November. This is the 13th consecutive month that the index has been in expansion territory, indicating slower supplier delivery performance. (Supplier Deliveries is the only ISM® PMI® Reports index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

“The Prices Index registered 64.3 percent in December, its lowest level since a reading of 60.9 percent in March 2025. The December figure was a 1.1-percentage point drop from November’s reading of 65.4 percent. The index has exceeded 60 percent for 13 straight months.br /> emphasis added

Employment expanded following six consecutive month of contraction.