ISM indicates that the US economy began 2026 on solid footing

US Services Sector Remains Resilient Despite Global Challenges

The latest ISM services index registered a slight decline, coming in a bit below expectations. However, it still reflects robust activity, suggesting that the United States is currently well-positioned to navigate economic uncertainties linked to the Middle East situation. The main index eased from 56.1 to 54, compared to the anticipated 54.9.

The accompanying chart illustrates how ISM manufacturing and services business activity readings correspond with annual GDP growth. Presently, these figures indicate that the US economy is on track to grow by 2.5% this year, closely matching our projection for GDP expansion in 2026.

Looking at the underlying data, there are encouraging signs, particularly in new orders and other key components.