US Services Sector Surges as PMI Exceeds Expectations

In a promising turn for the US economy, the S&P Global US Services PMI slightly declined to 55.4 in August 2025 from July’s peak of 55.7. Despite this minor dip, the PMI fiercely outperformed the market consensus of 54.2, signaling a robust expansion in the US private services sector.

A Glimpse at New Business Dynamics

The heartening figures reflect a sharp increase in new business for service providers, narrowly trailing last month’s growth. This indicates consistent demand and confidence in the sector’s trajectory.

Sales Growth Hits a New High in 2025

Particularly noteworthy was the surge in sales growth, which marked the year’s most significant improvement, creating a buoyant backdrop for service-oriented companies navigating the post-pandemic market dynamics.

Work Backlogs and Workforce Expansion

Backlogs of work ascended at the previously unseen velocity since May 2022. Such vigorous activity compelled businesses to onboard new staff, registering the most substantial workforce growth since January of the current year.

Pricing Pressures and Rising Input Costs

Price dynamics also painted an intriguing picture, with service providers witnessing input costs rising at a rate only surpassed once in the past two years. Consequently, output charges rose at their most rapid pace in three years, highlighting ongoing inflationary pressures.

This composite analysis from S&P Global serves as a beacon of resilience and adaptability within the US services sector, portraying an economic landscape teeming with opportunities and challenges. As stated in www.tradingview.com, this trend provides valuable insight into the upcoming economic phases.

For a more interactive analysis, interested readers can further explore these trends under “Supercharts” allowing an extensive graphical comparison of the latest developments in the US services market.