U.S. service-sector activity accelerated sharply in August, according to preliminary data published by S&P Global on Friday. The seasonally adjusted services Purchasing Managers’ Index rose to 56.8 from 54.6 in July, surpassing the median forecast of 53.9 and signaling the strongest expansion since January 2024.
The survey, compiled by S&P Global in partnership with Market Economics, covers transport and communications, financial services, business and personal services, computing and IT, and hospitality. A reading above 50 indicates growth, and the latest figure points to robust demand across the sector.
The increase exceeded economists’ projections, which had anticipated a moderate expansion. The prior month’s reading had already signaled growth, but the latest jump suggests momentum is broadening. Service providers reported stronger new business inflows and improved operating conditions, though some noted persistent wage pressures and input-cost inflation.
The data follows closely on the heels of Tuesday’s manufacturing PMI, which also beat expectations, reinforcing indications of a synchronized pickup in economic activity. Traders and policymakers will scrutinize the report as they assess the timing and pace of potential Federal Reserve policy adjustments amid shifting inflation dynamics.
