The S&P Global US Services PMI climbed to 54.6 in July from 51.2 in June, revised up from the flash estimate of 53.6 and signaling the fastest pace of expansion in nine months. New business rose at the strongest rate since November, with survey respondents citing a pickup in activity linked to FIFA World Cup and Independence Day spending, as well as increased investment in sales, marketing, and product development.
Growth in new work was driven by domestic clients, while export orders recorded their steepest decline since 2022 amid the impact of tariffs and the war in the Middle East. In response to higher workloads, firms expanded their staffing levels at the quickest rate in eight months.
At the same time, input cost inflation accelerated to a 14‑month high, reflecting tariffs and higher raw material prices. This prompted many companies to raise output charges where possible to pass on the higher costs to customers. Looking ahead, business confidence strengthened, supported by expectations of easing energy prices and planned business expansion.
