The S&P Global US Services PMI rose to 51.2 in June 2026, up from 50.7 in May and only slightly below the flash estimate of 51.3. The reading signaled the strongest expansion in the US services sector since before the outbreak of war in the Middle East, which had triggered a global energy shock.
New business grew at a faster rate, supported by an influx of high-spending tourists and a surge in events linked to the FIFA World Cup hosted by the US during the period. However, historically subdued sentiment about future business conditions restrained hiring, and overall employment fell for the third time in four months.
At the same time, rising labor costs pushed up operating expenses, amplifying the impact of tariffs and higher fuel prices associated with the war in Iran. Despite these pressures, firms remained optimistic about business activity over the coming year.
