US services sector accelerates in August as ISM and S&P Global PMIs strengthen
By Iain Gilbert
Date: Thursday 03 Sep 2026
(Sharecast News) - US services activity strengthened in August, with both the Institute for Supply Management's and S&P Global surveys pointing to the fastest pace of expansion in months as demand, new orders and backlogs picked up across the sector.
The ISM's services PMI rose to 55.4 in August from 54.1 in July, beating expectations and marking the strongest sector expansion in six months as business activity, new orders, inventories and backlogs all accelerated.
Employment contracted for a second month and price pressures hit a four‑year high, driven by rising petroleum‑related costs, while supplier deliveries slowed further and respondents highlighted tariffs and the Middle East conflict as key supply‑chain headwinds.
S&P Global's services purchasing managers index rose to 56.5 in August from 54.6 in July, marking the strongest expansion in private sector activity since late 2020, despite being a downward revision from preliminary estimates, while S&P's composite PMI held at 56 in August, its highest level in more than four years and up from 54.5 in July, signalling a third straight month of accelerating private sector growth.
August's improvement comes even as firms faced rising price pressures, slower supplier deliveries and mixed sentiment amid geopolitical and tariff‑related headwinds.
Reporting by Iain Gilbert at Sharecast.com
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