US services growth slows as S&P Global PMI revised lower
By Benjamin Chiou
Date: Thursday 04 Sep 2025
(Sharecast News) - Economic activity across the American services sector grew slightly less than expected in August, according to final estimates out on Thursday from S&P Global.
The S&P Global US services purchasing managers' index came in at 54.5 for last month, down from the year-to-date high of 55.7 seen in July.
That was revised lower than the flash estimate of 55.4 released two weeks ago, but still the second-strongest rate of growth registered this year, underpinned by another solid gain in orders, while payrolls numbers increased for the sixth straight month.
Business confidence, however, remains "relatively subdued", according to S&P Global, with sentiment at its lowest in four months amid ongoing concerns about tariffs and trade uncertainty. Meanwhile, purchasing managers' optimism about the year ahead dropped to one of its lowest levels over the past three years.
The composite PMI, which tracks activity across the services and manufacturing sectors combined, was revised to 54.6 in August from the flash estimate of 55.4, with growth slowing from 55.1 in July.
"Together with a robust manufacturing PMI reading, the surveys are consistent with the US economy growing at a solid 2.4% annualised rate in the third quarter," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
"Inflation concerns have been fanned by a further steep rise in input costs which have fed through to another marked increase in average charges for services," Williamson said. "The survey data therefore point to some downside risks to growth in the coming months while signalling upside risks to inflation, as import tariffs feed through to prices charged for both goods and services."
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