The S&P Global Services PMI climbed to 58.3 in July 2026 from 54.2 in June, marking its highest reading since March 2023 and surpassing market expectations of 54.9. Business activity grew at one of the fastest paces in nearly five years, underpinned by the strongest rise in new orders since January 2025. This was largely driven by resilient domestic demand and the success of new product launches and commercial initiatives.
In response, firms stepped up hiring, with employment growth reaching its highest rate since January. However, workloads continued to exceed operating capacity, leading to a further buildup in backlogs.
On the cost front, input price inflation moderated to its lowest level since February, despite ongoing increases in energy, fuel, and labour costs. At the same time, competitive pressures constrained firms’ ability to raise prices, and output price inflation slowed to its weakest pace since early 2021.
While business confidence remained in positive territory, sentiment eased somewhat amid persistent political uncertainty.
