The S&P Global US Services PMI climbed to 53.6 in July 2026 from 51.2 in June, according to a flash estimate, signaling the strongest expansion in services sector activity so far this year. The improvement was driven by a larger volume of new business, with firms reporting a boost from FIFA World Cup–related spending as well as increased investment in sales, marketing, and product development.
However, the war in Iran continued to weigh on the sector, primarily through higher energy costs, which pushed up operating expenses and eroded consumers’ purchasing power, thereby constraining overall activity. As a result, employment growth remained only marginal.
Input costs in the services sector rose at their fastest pace in 14 months, and output prices recorded their sharpest increase in nearly four years. Despite these mounting inflationary pressures, business confidence strengthened, with the sentiment index reaching a one-year high.
