2025.09.0413:57:03UTC+00US Services Activity Revised Lower: S&P Global

The S&P Global US Services PMI registered a decline to 54.5 in August 2025, down from the peak of 55.7 recorded in the previous month, and revised from an earlier estimate of 55.4. Despite this downward revision, it remained slightly above the anticipated market projections of 55.4. The volume of new business saw its second-strongest growth since the beginning of the year, as companies reported a general increase in demand, notably in the financial services sector. This growth compensated for the slowdown experienced by consumer service providers, which faced challenges due to newly imposed tariffs. The rise in new business compelled companies to sustain their hiring momentum for the sixth consecutive month. On the pricing front, increased payroll expenses contributed to rising operating costs. Additionally, tariffs escalated input costs for specific industries, prompting companies to pass these expenses onto clients, keeping output charge inflation near a three-year high. Prospects remain clouded by inflation concerns and uncertain federal policies, which have tempered business sentiment.