S&P Global US Services PMI

The final S&P Global US Services PMI for August 2026, released on September 3, 2026, came in at 56.5, up from 54.6 in July—a gain of 1.9 points. The reading was revised slightly lower from the flash estimate of 56.8, but still represented the fastest pace of expansion since December 2020.

Among the key components, new business grew at the strongest rate in more than 20 months, driven by new client acquisitions and a marked increase in export orders. Staffing levels rose solidly in line with higher activity. Input cost inflation remained elevated but eased slightly from July's 14-month high, while the rate of output charge inflation slowed to a six-month low.

S&P Global released its flash US Services PMI for July 2026, showing a reading of 53.6 points, up from 51.2 in June 2026. The result marks a 2.4-point increase from the prior month and represents the highest level since November 2025, well above the consensus estimate of 51.5.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that US businesses reported a strong start to the third quarter, with employment rising for the first time in three months. However, the release also flagged that overall selling price inflation reached its highest point since August 2022, while services price inflation climbed to its steepest rate in nearly four years.

S&P Global additionally highlighted a renewed intensification of supply chain delays as a factor contributing to rising cost pressures. The flash Composite PMI also rose to 53.6 from 51.9 in June, reaching an eight-month high.

The S&P Global US Services PMI rose to 51.2 points in June 2026, up from 50.7 points in May, according to the final reading published by S&P Global in July 2026. The reading, which marks the highest level in four months, remains above the 50-point threshold that separates expansion from contraction. The survey was conducted by S&P Global between June 11 and 26, 2026, covering approximately 400 service sector companies.

Among the key components, new orders expanded at the fastest pace since February, supported in part by demand linked to the FIFA World Cup. Export orders, however, declined for a seventh consecutive month, with respondents broadly citing uncertainty around government policy and tariffs as the primary drag. Employment fell for the third time in four months, as historically subdued business conditions continued to discourage hiring.

On the price front, input cost inflation eased slightly, aided by lower oil prices, but costs continued to rise at a steep rate and were passed on through higher service charges. Customer pushback against elevated prices was widely reported, particularly among consumer-facing businesses. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that the acceleration in services growth brought activity to its strongest level since the outbreak of the war in the Middle East, while the survey data broadly pointed to annualized economic growth of around 1.2% over the second quarter.

S&P Global reported in early June that its final US Services PMI for May 2026 registered 50.7, down from 51.0 in April and revised lower from the flash estimate of 50.9. While the index held just above the 50 mark separating expansion from contraction, it signaled one of the weakest expansions in about two and a half years.

According to the release, new orders from foreign clients fell at the fastest rate since 2022, and demand for new projects was muted. Against that backdrop, service providers cut jobs at the quickest pace since May 2020.