The S&P Global US Services PMI rose to 52.3 in May of 2025 from the 17-month low of 50.8 in the previous month, ahead of market expectations of 50.8, according to a flash estimate.
Businesses received higher amount of new orders in the period despite the aggressive drop in orders from foreign markets, which was the sharpest on record when excluding the pandemic, indicating that tariffs and unpredictable economic policy by the government continued to impact businesses.
The uncertainty and softer demand for capacity drove service providers to trim their employment levels for the second time in four months. On the price front, input costs rose the most since June 2023 amid higher labor costs, driving output charge inflation to its highest in over two years.
Source: Trading Economics
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