FX.co ★ US Services PMI Revised Higher

In March 2025, the S&P Global US Services PMI was adjusted upwards to 54.4 from the initial estimate of 54.3, representing the highest level recorded this year. Business activity experienced growth, bolstered by increased customer demand, which was in part facilitated by unusually warm weather. Although new business saw a strong increase, this was chiefly sourced domestically. However, there was a decline in confidence, reaching its second-lowest point since 2022, attributed to apprehensions regarding tariffs and federal budget reductions. Employment saw a moderate rise, yet operating costs escalated at their quickest rate in 18 months, primarily due to wage pressures and increases in vendor prices. Competitive pressures restricted the extent to which businesses could transfer these rising costs to customers.