US Services Activity Revised Higher

The S&P Global US Services PMI rose to 54.6 in July from 51.2 in the previous month, revised higher from the flash estimate of 53.6 to mark the sharpest expansion in activity in nine months. New business levels rose the most since November, with panelists noting a pickup in activity due to FIFA World Cup and Independence Day spending, and higher investments in sales, marketing, and product development. New work was awarded from domestic clients, as export orders fell the most since 2022 amid tariffs and the Middle East war. Consequently, firms increased their staff counts the most in eight months. Meanwhile, input cost inflation rose to a 14-month high due to tariffs and higher raw-material costs, driving companies to pass on price hikes to consumer charges when possible. Looking ahead, confidence improved on hopes of easing energy prices and business expansion plans.

The S&P Global US Services PMI rose to 53.6 in July of 2026 from 51.2 in the previous month, marking the fastest expansion in services sector activity so far this year, according to a flash estimate. Output was supported by a larger intake of new work for companies, with companies noting a pickup in activity due to FIFA World Cup spending and higher investments in sales, marketing, and product development. Still, the impact of the war in Iran, mainly though higher energy prices that lifted operating cars and squeezed consumers' purchasing power, continued to impact activity levels. Therefore, employment growth was only marginal. Input prices for the sector grew to a 14-month high, and output inflation surged to its highest in nearly four years. Despite inflationary risks, the sentiment gauge rose to a one-year high.

The S&P Global US Services PMI rose to 51.2 in June of 2026 from 50.7 in the previous month, revised marginally lower from the flash estimate of 51.3. Still, the result pointed to the fastest pace of expansion in the US services sector since before the outbreak of war in the Middle East triggered a global energy shock. New business grew at an accelerated pace, aided by an influx of high-spending tourists and events amid the FIFA World Cup that the US hosted during the period. Still, historically muted perceptions of business conditions dimmed the pace of hiring and the net amount of jobs decreased for the third month in the last four. Consistently, labor-related costs increased operating expenses in the period, magnifying the impact of tariffs and higher fuel prices from the war in Iran. Looking forward, firms continued to be optimistic on business output in the coming year.