The ISM Services PMI rose to 52.4 in October 2025 from 50 in September, beating forecasts of 50.8, pointing to the strongest expansion in the services sector since February. Both business activity (54.3 vs 49.9) and new orders (56.2 vs 50.4) rebounded while the continued contraction in employmet (48.2 vs 47.2) shows a lack of confidence in the continued strength of the economy. "There was no indication of widespread layoffs or reductions in force, but the federal government shutdown was mentioned several times as impacting business activity and generating concerns for future layoffs", according to Steve Miller, Chair of the ISM. ALso, the backlog of orders index continued its 3-1/2 year declining trend (40.8 vs 47.3) as companies can more than keep up with new orders to reduce backlogs. Price pressures increased (70 vs 69.4) as companies continue to mention the impact of tariffs on prices paid.