FX.co ★ US Private Services Activity Revised Lower

The S&P Global US Services PMI eased to 50.7 in May 2026 from 51.0 in April, revised down from a preliminary estimate of 50.9 and remaining below the flash reading of 51.1. Despite the loss of momentum, the index still signaled an ongoing recovery from the previous month’s rebound, after the outbreak of war in the Middle East had pushed the sector into contraction in March.

New business inflows rose only modestly, as higher prices and elevated uncertainty kept consumer demand subdued. External demand weakened further, with new orders from abroad falling at the fastest rate since 2022. The soft pipeline of new work prompted firms to reduce staffing levels at the quickest pace since May 2020.

On the cost side, input prices for service providers increased at the sharpest rate in a year, feeding through into a strong rise in output charges. Looking ahead, business confidence deteriorated, with optimism about the year-ahead outlook slipping to its lowest level in more than three years.