US factory input prices jump to 77.9 in the ISM survey as services growth cools to 54.9
The ISM manufacturing prices index rose 6.8 points to 77.9 while the PMI held at 54.5, a ninth month of growth. The services PMI slipped to 54.9, its 27th month of expansion, with business activity down to 56.5.
Two surveys from the Institute for Supply Management (ISM) landed this week. The September manufacturing report, published on 1 October, showed a PMI of 54.5 and a prices index that jumped to 77.9. The services report, published on 5 October, showed a PMI of 54.9. A reading above 50 means growth (PMIs explained).
Manufacturing, 1 October
- Manufacturing PMI: 54.5 (August: 54.6), a ninth consecutive month of growth
- New orders: 55.3 (53.7)
- Production: 56.7 (58.3)
- Employment: 52.7 (51.2)
- Prices: 77.9 (71.1), up 6.8 points
- Backlog of orders: 56.4 (51.8)
- Supplier deliveries: 59.0 (59.3)
- Inventories: 48.6 (50.6)
- New export orders: 50.9 (53.2), and imports: 51.0 (52.5)
Twelve of 18 manufacturing industries reported growth. The prices index, which reflects what manufacturers pay for inputs, was 71.1 in both July and August (August report), so September's 6.8-point jump is a sharp step up.
Services, 5 October
- Services PMI: 54.9 (August: 55.4), the 27th consecutive month of expansion
- Business activity: 56.5 (61.7)
- New orders: 59.8 (60.9)
- Employment: 50.1 (47.8), back above 50 after two months below
- Prices: 74.0 (72.6)
- Backlog of orders: 56.6 (55.6)
- New export orders: 46.9 (56.3), and imports: 52.9 (56.3)
Thirteen industries reported growth and four reported contraction. August's services report had shown business activity at 61.7.
What it means for the Fed and the dollar
Rising input prices at factories and in services arrive as PCE inflation is 3.4% (report) and the Federal Reserve is weighing a second increase after the one on 16 September (report). The employment indexes recovered even though September payrolls rose only 29,000 (report), which is the kind of survey-versus-data gap traders weigh. S&P Global's flash composite PMI, at a five-year high of 58.4, pointed the same way as the ISM surveys on growth (report). Live prices: EUR/USD.
What happens next
Consumer prices for September are published on 14 October. The ISM releases its manufacturing report on the first business day of the month and its services report on the third, which puts the October reports on 2 and 4 November.
Sources
- Institute for Supply Management: Manufacturing PMI at 54.5%, September 2026 ISM Manufacturing PMI Report (1 October 2026)
- Institute for Supply Management: Services PMI at 54.9%, September 2026 ISM Services PMI Report (5 October 2026)
- Institute for Supply Management: September 2026 Manufacturing PMI Report
Common questions
What was the ISM manufacturing PMI in September 2026?
54.5, down from 54.6 in August and a ninth consecutive month of growth. The prices index rose to 77.9 from 71.1.
What was the ISM services PMI in September 2026?
54.9, down from 55.4 in August, the 27th consecutive month of expansion. Business activity was 56.5 and new orders 59.8.
What does the ISM prices index measure?
Whether the prices firms pay for inputs are rising or falling. A reading above 50 means rising; at 77.9 for manufacturers and 74.0 for services in September 2026, both show widespread increases.
Did ISM employment grow in September 2026?
Manufacturing employment rose to 52.7 from 51.2. Services employment rose to 50.1 from 47.8, back above 50 after two months of contraction.
When are the next ISM reports?
The ISM publishes its manufacturing report on the first business day of the month and its services report on the third, so the October reports are due on 2 November 2026 and 4 November.
This article is for information only and is not financial advice. Trading forex and CFDs carries a high risk of losing money. Read the risk warning. Spotted an error? Tell the editors.
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