U.S. Services Sector Expands in February 2026

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The February 2026 ISM Services PMI report shows that the U.S. services sector continued to grow. The index rose to 56.1%, which is 2.3 percentage points higher than January and the highest level since July 2022. Because a PMI reading above 50 indicates expansion, this result signals strong growth in services. It also suggests that the overall U.S. economy has been expanding for 69 straight months.

Growth in February was broad across the sector. All four major indicators—business activity, new orders, employment, and supplier deliveries—were in expansion territory for the third month in a row. In fact, all ten indexes tracked in the report showed growth, something that has not happened since March 2021. Business activity and demand increased significantly. The Business Activity Index rose to 59.9%, while the New Orders Index climbed sharply to 58.6%, indicating strong demand for services. Hiring also improved, with the Employment Index reaching 51.8%, marking the third consecutive month of job growth in the sector.



Supplier deliveries came in at 53.9%. Because this index works in reverse, a reading above 50 means deliveries are slower. However, the slowdown was slightly less severe than in January. Companies are still facing rising costs, but price pressures appear to be easing somewhat. The Prices Index dropped to 63.0%, its lowest level since March 2025. This means prices are still increasing, but at a slower pace than before.

Some categories experienced very large month-to-month improvements. Inventories increased to 56.4%, the backlog of orders jumped to 55.9%, and new export orders surged to 57.2%, all showing strong rebounds. Industry performance was generally positive. Fourteen industries reported growth, led by mining, information, and real estate, rental, and leasing. Only three industries contracted: retail trade, arts, entertainment and recreation, and transportation and warehousing.
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