FX.co ★ US Services Sector Unexpectedly Rises to 3-Month High: S&P Global

The S&P Global US Services PMI climbed to 54.3 in March 2025, marking a three-month peak, up from 51 recorded in February, and exceeding market anticipations of 50.8, according to preliminary data. The service sector experienced a robust rebound in activity, after reaching a 15-month trough in February, spurred by increased business inflows, heightened customer demand, and favorable weather conditions. On the downside, exports continued to falter, declining for the third consecutive month. Employment figures showed a modest increase in April, countering the slight decline seen in February, although overall job growth remained tepid as companies were cautious about hiring due to prevailing demand uncertainties. Input costs escalated, reaching an 18-month high, while selling prices experienced a slight rise, as enterprises maintained competitive pricing amidst a subdued demand backdrop. Concurrently, confidence within the service sector diminished for the third straight month, falling to its second-lowest point since October 2022. Businesses expressed concerns regarding the potential impact of federal spending cuts, tariffs, and broader policy reforms on demand and financial markets.