Economy: ISM Non-Manufacturing (SERVICES) Index for AUGUST 2026

The Institute for Supply Management (ISM®) released their Non-Manufacturing / Services Index (NMI®) for August, 2026:

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Actual: 55.4% (+1.3 points month-on-month change)

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Previous month: 54.1%

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The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

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From Today' Report:

"...Economic activity in the services sector continued to expand in August, say the nation’s purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® registered 55.4 percent, the 26th consecutive month in expansion territory..."

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Here's A Sampling Of Comments
Made By Survey Participants:

"...'General business conditions are positive. The challenges lie in managing through the dynamic nature of the administration’s policies -- tariffs and [Iran invasion] -- that have caused numerous input cost headwinds for suppliers and us.'
[Accommodation + Food Services]

'The bond market pushed 30-year mortgage rates up to 6.67 percent, reducing affordability and moving prospective buyers back to the sidelines. The new-build housing market continues to slow with the selling season coming to a close and the start of the new school year. Rate buydowns and discounts have become the norm instead of the tool to drive traffic.'
[Construction]

'The [Iran invasion] and strain on the oil supplies has resulted in our paying higher cost for fuel. Locally, our economy continues to perform well, and our housing market is solid. We expect our enrollment to remain steady as long as the local economy stays strong.'
[Educational Services]

'Rising health-care costs, regulatory complexity and reimbursement pressure continue to drive a cautious purchasing environment within health insurers. Focus remains on cost management, supplier performance, operational efficiency and risk mitigation, resulting in increased scrutiny of supplier value, contract commitments and strategic investments.'
[Finance + Insurance]

'We received a few communications regarding tariffs that are being refunded. Fewer materials being back-ordered at this time.'
[Health Care + Social Assistance]

'Concerns about market trends, reduced hospital sources of revenue and increasing debt management creating reluctance of our customers to expand.'
[Management of Companies + Support Services]

'Business is picking up and forecast to increase over the next six months.'
[Other Services]

'The stacked Section 301 duties plus the newer forced-labor related tariffs are keeping landed costs elevated and forcing constant TCO recalculation. We are actively dual-sourcing and evaluating nearshoring options, but qualified capacity, lead times and quality consistency are limited for certain specialty materials and components. The results are higher inventory buffers, longer planning cycles, and margin pressure that we can only partially pass through. On the positive side, Florida ports (especially Port Everglades and the broader South Florida gateway) remain relatively fluid compared with the congestion spikes earlier in the year on the West Coast and in Europe.'
[Professional, Scientific + Technical Services]

'The memory shortage is continually getting worse. For devices requiring (memory) cards, inventory is low and prices are high.'
[Retail Trade]

'The electrical distribution industry volume demand and opportunities remain very strong. Commodities-based products of materials like copper, aluminum and polyvinyl chloride continue to have price increases and adjustments on a weekly basis. Geopolitical issues like tariffs continue to impact pricing as well. Supplier capacities are still strained due high market demands.'
[Wholesale Trade]

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