FX.co ★ US Services Activity Rises Most in 20 Months

The S&P Global US Services PMI climbed to 56.8 in August 2026 from 54.6 in July, significantly beating market expectations for a decline to 54 and marking the strongest expansion in services activity since December 2024. New business increased sharply, expanding firms’ backlogs as clients sought to compensate for order weakness earlier in the year, when the outbreak of war in the Middle East weighed on demand in the second quarter.

In line with stronger activity, staffing levels rose solidly. Input costs continued to increase at a marked pace, though cost inflation eased slightly from July’s 14‑month high. Nonetheless, the rate of output charge inflation slowed to a six‑month low. Looking ahead, business confidence strengthened for a third consecutive month.