FX.co ★ US Services Activity Surge to 5-Year High: S&P Global

The S&P Global US Services PMI climbed to 58.7 in September 2026 from 56.5 in August, exceeding the market consensus of 56 and marking the strongest expansion in services activity in more than five years. New orders registered their fastest increase in over four years, driven by robust domestic consumer demand that more than offset weaker export orders, as volatile tariff policies deterred some international clients. The surge in business demand led to a further buildup of backlogs of work. In turn, capacity pressures pushed employment growth to its highest level since June 2022, approaching a survey record. This occurred even as input cost inflation rose to its highest rate in nearly four years, with the war in Iran sending fuel and transportation costs sharply higher. As a result, firms continued to raise output charges. Looking ahead, however, business confidence remained below its long-run average, weighed down by ongoing cost-of-living concerns.