S&P Global's flash US services PMI eased to 57.9 in October from 58.8 in September, matching the 57.9 consensus and just under the 58.0 economists penciled in elsewhere.
The flash composite output index, which blends services and manufacturing, slipped to 57.6 from a five-year high of 58.4. Anything above 50 signals expansion.
Services does the heavy lifting in the US economy, so a softer reading there pulled the whole index down even as factories picked up.
US Flash PMI, Services vs Composite (index points, as of Oct. 23, 2026)
Bar chart. Index Points (50 = no change). Services PMI (Oct Actual): Index Points 57.90. Services PMI (Oct Consensus): Index Points 58. Composite Index (Sep): Index Points 58.40. Composite Index (Oct): Index Points 57.60.
Demand stayed strong. New orders edged up to 58.2, the highest since March 2022, helped by rising domestic demand and precautionary stock building, S&P Global said.
Prices charged are the headline
The gauge of prices businesses charge customers jumped to 59.8 from 58.4, the highest since August 2022.
Input costs eased slightly to 64.9 from 65.9, still elevated, meaning firms are passing on more of what they pay rather than absorbing it.
Supply chains are tightening too. Suppliers' delivery times fell to a more than four-year low of 38.1 from 40.9, the sharpest lengthening since 2022, with material and labor shortages cited alongside shipping delays.
"Supply chain bottlenecks have meanwhile intensified, and order book backlogs are growing."
Chris Williamson, S&P Global Market Intelligence
Williamson tied the price surge partly to oil, noting the renewed climb in crude is feeding into a wide range of goods and services.
What it means for the Fed
The Federal Reserve raised its benchmark rate by 25 basis points in September to the 3.75% to 4.00% range.
Economists expect no move at the Oct. 28 meeting, with another hike broadly priced in for December.
Williamson said the survey's output readings point to growth at a 5% annualized rate in the fourth quarter, well above the roughly 3% economists expect the government to report for the third quarter.
Employment dipped overall after September's surge, though factory hiring hit its strongest pace since March 2012.
The signal is an economy still running hot, with inflation pressure building from the cost side rather than fading. Flash readings cover about 85% of survey responses, and final figures land in early November.
