ISM Services Growth at Highest Since Mid-2022; S&P Global Reports Slowdown

02:02 PM EST, 03/04/2026 (MT Newswires) -- Two surveys showed Wednesday a mixed picture of the US services sector, with the Institute for Supply Management reporting the fastest growth rate in activity since mid-2022, while S&P Global (SPGI) saw a slowdown.

The ISM's purchasing managers' index rose to 56.1 last month, the highest reading since July 2022, from 53.8 in January. The consensus was for a 53.5 print in a survey compiled by Bloomberg. A reading above 50 indicates the services sector economy is generally expanding.

The business activity index climbed to 59.9 in February from 57.4 in January, while the gauge for new orders jumped to 58.6 from 53.1.

The employment measure climbed to 51.8 from 50.3, remaining in expansion territory for the third consecutive month, while the prices index fell to the lowest reading since March 2025.

All of ISM's 10 reported indexes were in growth territory for the first time since March 2021, Steve Miller, chair of the association's services business survey committee, said in a statement.

"The strongest services sector activity since 2022 suggests the US economy rebounded nicely in (the first quarter) after slowing late last year," Sal Guatieri, senior economist at BMO Capital Markets, said in a report. " The US economy is off to a decent start and its resilience should help it overcome turbulence from the Iran war, barring an extreme scenario for energy prices."

The US and Israel conducted military strikes across Iran on Saturday, killing Tehran's Supreme Leader, Ayatollah Ali Khamenei. Iran retaliated by targeting US military bases across a number of countries in the Middle East. Iran has effectively shut the crucial Strait of Hormuz, driving concerns about supply disruptions that have boosted oil prices.

Separately, S&P Global (SPGI) said Wednesday its services PMI gauge ticked down to 51.7 in February from 52.7 the month prior, marking the sector's weakest growth in 10 months. Wall Street projected a 52.3 index level. The slowdown was accompanied by a moderate rise in incoming new business.

"February's PMI surveys reflect increasingly tough trading conditions for businesses so far this year," S&P Global Market Intelligence Chief Business Economist Chris Williamson said. "Slowing demand growth from customers both at home and across export markets has been compounded by adverse weather in many states."

On Monday, ISM and S&P Global (SPGI) simultaneously released results of their surveys for the US manufacturing sector, both showing a slowdown in growth in February amid demand and production softness.

"Combined with a sharp slowing of manufacturing output growth in February, waning service sector performance indicates that the economy is growing at an annualized rate just below 1.5% so far in the first quarter, though hopefully this will improve somewhat if we see a weather-related bounce back in March," Williamson said.

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