The S&P Global US Services PMI fell to 51 in August of 2023 from 52.3 in the previous month, missing market expectations of 52.2 to reflect the slowest expansion in the US services sector in six months. High interest rates and broad-based inflationary pressures weighed on consumer spending, driving service providers to report the fastest drop in new business since the start of the year. The developments were enough to pressure business activity to slow the most in six months, remaining positive due to a faster clearance of incomplete work. In the meantime, low demand for new business drove service providers to rein in employment growth. Additionally, input price growth accelerated in the period as higher wage bills continued to lift spending, although increased competition limited the carry-on to output charges. Still, business confidence improved for companies in August, supported by hopes of greater client demand as interest rates approach their peak. source: Markit Economics

Services PMI in the United States averaged 53.92 points from 2013 until 2023, reaching an all time high of 70.40 points in May of 2021 and a record low of 26.70 points in April of 2020. This page provides the latest reported value for - United States Services PMI - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United States Services PMI - data, historical chart, forecasts and calendar of releases - was last updated on August of 2023.

Services PMI in the United States is expected to be 48.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations.

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United States Services PMI



Related Last Previous Unit Reference
Manufacturing PMI 47.00 49.00 points Aug 2023
Services PMI 51.00 52.30 points Aug 2023
Composite PMI 50.40 52.00 points Aug 2023

United States Services PMI
The S&P Global US Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. The sectors covered include consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services. The index tracks variables such as sales, employment, inventories and prices; and varies between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The headline figure is the Services Business Activity Index, which is a diffusion index calculated from a question that asks for changes in the volume of business activity compared with one month previously. The Services Business Activity Index is comparable to the Manufacturing Output Index.
Actual Previous Highest Lowest Dates Unit Frequency
51.00 52.30 70.40 26.70 2013 - 2023 points Monthly

News Stream
US Services Activity Expand the Least in 6 Months
The S&P Global US Services PMI fell to 51 in August of 2023 from 52.3 in the previous month, missing market expectations of 52.2 to reflect the slowest expansion in the US services sector in six months. High interest rates and broad-based inflationary pressures weighed on consumer spending, driving service providers to report the fastest drop in new business since the start of the year. The developments were enough to pressure business activity to slow the most in six months, remaining positive due to a faster clearance of incomplete work. In the meantime, low demand for new business drove service providers to rein in employment growth. Additionally, input price growth accelerated in the period as higher wage bills continued to lift spending, although increased competition limited the carry-on to output charges. Still, business confidence improved for companies in August, supported by hopes of greater client demand as interest rates approach their peak.
2023-08-23
US Services PMI Revised Slightly Lower: S&P Global
The S&P Global US Services PMI was revised slightly lower to 52.3 in July 2023 from a preliminary of 52.4, pointing to the slowest growth in the services sector in five months as demand conditions softened. Business activity and new orders increased at slower rates, as high interest rates in particular reportedly weighed on domestic customer spending. Nonetheless, new export business rose at a sharper pace, supporting a sustained upturn in total new sales. In line with a softer rise in new orders, firms increased employment only marginally amid a renewed contraction in backlogs of work. Meanwhile, input prices rose at the slowest pace since December 2022, but firms hiked output charges at a faster pace. At the same time, services firms expressed the least upbeat expectations for output over the next year in 2023 so far.
2023-08-03
US Service Sector Growth Slows More than Forecast
The S&P Global US Services PMI dropped to 52.4 in July 2023, down from 54.4 the previous month and below market expectations of 54.0, according to a preliminary estimate. The latest reading pointed to the weakest pace of expansion in the sector since February, as new sales growth slowed amid constraints on client spending, including higher interest rates. Nevertheless, service providers recorded the fastest rise in new business from abroad since May 2022, signaling increased spending from foreign customers. The rate of job creation eased to a six-month low amid reports of difficulties in retaining and attracting staff due to rising wage costs, as well as a lack of skilled candidates for open vacancies. On the price front, operating expenses and selling prices continued to increase at a solid rate.
2023-07-24