US Services Activity Holds Growth: S&P Global

2026-09-03 13:52 By Andre Joaquim 1 min. read

The S&P Global US Services PMI rose to 56.5 in August of 2026 from 54.6 in July, revised lower from the flash estimate of 56.8 but remaining well above the initial market expectations of 54.

It marked the sharpest expansion in private activity since December of 2020, reflecting resilience from the sector since the war in Iran triggered a surge in energy prices that lifted borrowing costs for companies.

New business rose the most in over 20 months, with panelists citing new customer wins and higher export orders.

With that, capacity pressures remained present and backlogs were built the fastest in three years.

Consequently, firms increased employment at the highest rate in 18 months.

Meanwhile, input cost inflation held above the historical trend, driving selling charges to rise and keep margins.

Finally, business expectations remained positive despite remaining below trend.



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US Services Activity Holds Growth: S&P Global
The S&P Global US Services PMI rose to 56.5 in August of 2026 from 54.6 in July, revised lower from the flash estimate of 56.8 but remaining well above the initial market expectations of 54. It marked the sharpest expansion in private activity since December of 2020, reflecting resilience from the sector since the war in Iran triggered a surge in energy prices that lifted borrowing costs for companies. New business rose the most in over 20 months, with panelists citing new customer wins and higher export orders. With that, capacity pressures remained present and backlogs were built the fastest in three years. Consequently, firms increased employment at the highest rate in 18 months. Meanwhile, input cost inflation held above the historical trend, driving selling charges to rise and keep margins. Finally, business expectations remained positive despite remaining below trend.
2026-09-03
US Services Activity Rises Most in 20 Months
The S&P Global US Services PMI rose to 56.8 in August of 2026 from 54.6 in the previous month, well above market expectations of a drop to 54, to reflect the sharpest expansion in services activity since December 2024. New business wins expanded sharply in the sector, fast enough to expand backlogs for firms as clients made up for the decline in orders after the outbreak of war in the Middle East dampened demand in the second quarter of the year. Consistently, staffing levels were firmly higher. Meanwhile, input costs continued to rise at a marked pace, although inflation eased a bit from the 14-month high in July. Despite this, average output charge inflation softened to a six-month low. Looking ahead, confidence improved for a third month.
2026-08-21
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.
2026-08-05