US services PMI posts fastest growth since 2021
By Iain Gilbert
Date: Monday 05 Oct 2026
(Sharecast News) - US service sector activity accelerated sharply in September, with the S&P Global services PMI jumping to 58.8 and the composite PMI rising to 58.4, both marking the strongest expansions in more than five years.
The services index posted a fourth consecutive monthly gain as business activity surged on the back of the fastest rise in new orders in four‑and‑a‑half years, while firms also stepped up hiring at the quickest pace since June 2022.
Confidence hit a one‑year high, though input‑cost inflation re‑accelerated to its steepest rate since late 2022 amid higher gas, transport and labour costs.
The composite PMI showed similarly robust momentum across both manufacturing and services, with output rising in line with a rapid increase in new business.
Companies added staff at the fastest pace in over four years, but strong demand continued to stretch capacity, driving a further build‑up in backlogs.
Price pressures also intensified, with input costs rising at the sharpest rate since October 2022 and firms lifting selling prices at a quicker pace.
Elsewhere, the Institute for Supply Management said US services activity continued to expand in September, with the Services PMI easing slightly to 54.9 from 55.4 but still marking a 27th straight month in growth territory.
The ISM said business activity remained solid despite a softer reading, while new orders stayed strong at 59.8, only marginally below August's level. Hiring picked up after a recent soft patch, with the employment index rising to 50.1 and moving back into expansion for the first time in three months. The ISM's Steve Miller said the sector continued to show resilience, with demand holding firm even as activity and new orders moderated slightly from August's highs.
Reporting by Iain Gilbert at Sharecast.com
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