US Services Activity Growth Remains Robust

2026-10-23 13:59 By Luisa Carvalho 1 min. read

The S&P Global US Services PMI eased to 57.9 in October 2026 from 58.8 in September and marginally below market forecasts of 58, according to a flash estimate.

The latest reading marked the seventh straight month of growth in business activity, with the pace of expansion remaining among the strongest since 2011, despite a slight moderation from September.

New business growth accelerated to its fastest pace since March 2022, supported by stronger domestic demand, while export orders recorded their largest increase since July 2023.

Employment growth moderated compared with September but was still the third largest for over four years.

However, price pressures intensified, with services inflation reaching its highest level since August 2022.

This reflected a further sharp increase in business costs, driven by rising fuels, alongside higher wages and rising utility and insurance expenses.

Business output expectations for the 12 months ahead cooled down from September's one-year high.



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US Services Activity Growth Remains Robust
The S&P Global US Services PMI eased to 57.9 in October 2026 from 58.8 in September and marginally below market forecasts of 58, according to a flash estimate. The latest reading marked the seventh straight month of growth in business activity, with the pace of expansion remaining among the strongest since 2011, despite a slight moderation from September. New business growth accelerated to its fastest pace since March 2022, supported by stronger domestic demand, while export orders recorded their largest increase since July 2023. Employment growth moderated compared with September but was still the third largest for over four years. However, price pressures intensified, with services inflation reaching its highest level since August 2022. This reflected a further sharp increase in business costs, driven by rising fuels, alongside higher wages and rising utility and insurance expenses. Business output expectations for the 12 months ahead cooled down from September's one-year high.
2026-10-23
US Services Growth at Over 4-1/2-Year High: S&P Global
The S&P Global US Services PMI rose to 58.8 in September 2026 from 56.5 in August, slightly above the flash estimate of 58.7. The index has signalled sustained growth in business activity for six months, with the latest expansion the strongest since July 2021. Technology remained the strongest-performing sector, while growth also accelerated across consumer businesses, industrials and healthcare. New orders rose at their fastest rate in over four years, driven by strong domestic demand, while employment increased for a third consecutive month, with job creation at its fastest since June 2022. Strong new orders continued to outpace capacity, pushing backlogged work higher for the 19th consecutive month. Cost pressures intensified, with input costs rising sharply to their highest level since November 2022 amid higher gas and labour costs. Output prices also increased faster, with inflation the second-highest in just over a year. Business confidence strengthened to a one-year high.
2026-10-05
US Services Activity Surge to 5-Year High: S&P Global
The S&P Global US Services PMI rose to 58.7 in September of 2026 from 56.5 in the previous month, well above the market consensus of 56 to reflect the strongest expansion in services activity in over five years. New orders rose the most in over four years, underpinned by strong demand from domestic consumers, enough to offset lower export orders as unpredictable tariff policy shunned a group of international clients. The jump in business demand drove work backlogs to continue accumulating. Likewise, the need for higher capacity lifted employment growth to its highest since June 2022, not far from a survey record. This was despite input cost inflation hitting its highest in nearly four years, with the war in Iran prompting fuel and transportation costs to surge. Consequently, output charges also rose. Looking ahead, business confidence remained below trend due to cost-of-living concerns.
2026-09-23