The S&P Global US Services PMI was at 52.5 in January of 2026, remaining unchanged from the eight-month low in the previous month and slightly below market expectations of 52.8. Still, the period marked almost three years of consecutive monthly growth, outperforming other major economies. Inflows of new business moderated slightly from the previous month, with exports falling at the sharpest rate since 2022. The softer demand for capacity drove employment growth to ease, magnifying the impact of higher labor costs in the sector. Still, input cost inflation moderated despite remaining elevated, feeding into marginally lower output charge inflation. Looking forward, business confidence for the upcoming year fell to its lowest in three months.