US services PMI hits six-month high while global readings diverge

US service activity accelerated more than expected in August, with the ISM services PMI at 55.4—its strongest reading since February and above forecasts, signaling robust demand in the sector. Japan also saw a firmer services expansion, with the PMI at 52.5 and a momentum pickup supported by resilience in domestic demand. In the UK, the services PMI rose to 52.5 in August, marking the fastest pace in four months but still undershooting expectations amid persistent inflation pressures and softer export demand. India’s services PMI rose to 54.1 in August, indicating ongoing expansion, though demand growth cooled and costs rose, while employment rose at the fastest pace in 15 months. Across the UK, the composite PMI matched the services strength at 52.5, reflecting a broadly improving service economy even as manufacturing softness and global uncertainties persist. Overall, the latest PMIs depict a mixed but broadly expanding services landscape across major economies, with inflation and external demand continuing to shape outlooks.