US Services Activity Revised Lower: S&P Global

The S&P Global US Services PMI fell to 54.5 in August of 2025 from the year-to-date-high of 55.7 in the previous month, revised lower from the flash estimate of 55.4, but remaining slightly head of the initial market expectations of 55.4. Volumes of new business grew at the second-sharpest pace since the start of the year with firms citing a general uplift in demand, especially among financial services, which offset the slowdown for consumer service providers that were weighed by new tariffs. The rise in new business drove companies to continue increasing their staff for a sixth month in a row. On the price front, higher payroll expenses pushed up operating costs, while tariffs lifted input costs for selected industries, which drove firms to pass on expenses to clients, with output charge inflation holding near a 3-year high. Looking forward, concerns of inflation and uncertain federal policies weighed on business sentient.