US Services Activity Revised Higher: S&P Global

The S&P Global US Services PMI rose to 55.7 in July of 2025 from 52.9 in the previous month, revised higher from the flash estimate of 55.2 and well above the initial market consensus of 53 to mark the sharpest expansion in private services activity since the start of the year.

New business for firms continued to increase in the period on the acquisition of new clients and launch of new products, despite the drop in demand from foreign customers, largely due to tariffs by the US government and the risk of retaliation by foreign counterparties.

The foreign retaliation on US tariffs drove input inflation to rise, driving output charges to gain sharply.

Likewise, the strong demand for business drove backlogs to rose the most in three years, and the added need for capacity drove firms to raise employment at the sharpest pace since January.

On the other hand, confidence on future output eased to a three-month low.