FX.co ★ US Services Activity Accelerates

The S&P Global US Services PMI increased to 52.3 in May 2025, up from a 17-month low of 50.8 the previous month, surpassing market predictions of 50.8, according to flash estimates. Despite a significant decline in orders from foreign markets — the steepest recorded outside of pandemic conditions — businesses experienced a rise in new orders overall. This trend suggests that tariffs and uncertain economic policies continue to affect business operations. Due to this uncertainty and decreased demand capacity, service providers have reduced employment levels for the second time in four months. Regarding pricing, input costs saw their most considerable rise since June 2023, driven largely by higher labor expenses, pushing output charge inflation to its highest point in over two years.