United States Services PMI2013-2021 Data | 2022-2023 Forecast | Calendar

The IHS Markit US Services PMI dropped to 59.8 in July 2021, from 64.6 in the previous month and well below market expectations of 64.8, a preliminary estimate showed. The latest reading signaled a further slowdown in service sector growth from May's record high, amid labor shortages and difficulties acquiring stock. New business rose the least for five months, with some firms noting customer hesitancy amid significant hikes in selling prices. Similarly, the rate of increase in new export orders eased. Although firms recorded solid gains in employment, the level of outstanding business rose further in July. On the price front, input costs and output charges continued to rise a strong rate. Looking ahead, business confidence fell to a five-month low.

The IHS Markit US Services PMI was revised slightly lower to 64.6 in June 2021, from a preliminary estimate of 64.8 and compared with the previous month's all-time high of 70.4. Still, the latest reading pointed to the third-fastest expansion in the service sector since data collection began in October 2009, amid rising customer demand due to the relaxation of COVID-19 restrictions. Growth rates in both new business and export remained strong, while the rate of job creation softened amid challenges finding suitable candidates. On the price front, input costs increased at the second-fastest rate on record as supplier price hikes and greater wage bills pushed up cost burdens. Nonetheless, accommodative demand conditions allowed firms to partially pass on higher costs to clients. Finally, business optimism improved to the strongest since November 2020.

The IHS Markit US Services PMI dropped to 64.8 in June 2021, from the previous month's all-time high of 70.4 and below market expectations of 70.0, a preliminary estimate showed. Still, the latest reading pointed to the second-sharpest expansion in the service sector since data collection began in October 2009, amid rising customer demand as pandemic restrictions eased further during the month. Growth rates in both new business and export remained strong, while struggles among companies to find suitable workers hampered the pace of job creation. Meanwhile, pressure on capacity was reflected in a solid rise in backlogs of work. On the price front, cost burdens increased at the second-fastest pace on record, boosted by wage costs and additional transportation fees. Similarly, output prices rose markedly as firms sought to pass on greater input costs to clients. Looking ahead, business optimism eased in June, amid concerns over the impact of rising inflation.

The IHS Markit US Services PMI was revised higher to 70.4 in May 2021, up from a preliminary estimate of 70.1 and pointing to the steepest pace of expansion in the sector since data collection for the series began in October 2009. New order growth hit an all-time high, helped by the continued reopening of the economy following COVID-19 restrictions and by the quickest rise in new export orders for nine months. The pace of job creation softened as firms reported difficulties filling vacancies, but remained solid overall. On the price front, input cost inflation accelerated for the seventh month running and was the sharpest on record, amid ongoing supplier price hikes. In an effort to pass on greater costs, service providers raised their charges at an unprecedented pace. Looking ahead, business confidence was strong, with optimism stemming from looser COVID-19 restrictions and stronger client demand.