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US Services Activity Surges to 58.8 in September, Reaching Five-Year High
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Firstpost•05-10-2026, 19:23
US Services Activity Surges to 58.8 in September, Reaching Five-Year High
- •The S&P Global US Services Business Activity Index rose to 58.8 in September from 56.5 in August, marking the strongest expansion since July 2021.
- •Growth in total new orders reached its fastest pace in four-and-a-half years, driven by strong domestic demand and rising workforce numbers.
- •Input cost inflation accelerated sharply in September due to higher gas, transportation, and labour costs, complicating Federal Reserve targets.
- •Economists estimate the robust services and manufacturing activity indicates third-quarter economic growth of around 4 percent.
Key Questions Answered
The S&P Global US Services Business Activity Index rose to 58.8 in September, up from 56.5 in August. This marked the fourth consecutive monthly increase and the strongest expansion in the services sector in more than five years.
Strong incoming orders led companies to increase hiring for the third consecutive month in September. The rate of job creation reached its fastest pace since June as workforce numbers expanded.
Input cost inflation accelerated sharply in September, driven by higher gas, transportation, and labour costs. This acceleration in input and selling prices could complicate the Federal Reserve's efforts to return inflation sustainably to its 2 percent target.
