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August PMIs Show U.S. Services Surge While France and Canada Slide

Stronger demand and rising input prices in several surveys heighten the likelihood of more central‑bank rate increases in coming weeks.

Customers dine at a restaurant in Beijing, China October 19, 2025. REUTERS/Tingshu Wang/File Photo
A waiter waits for customers at La Mere Catherine, Place du Tertre at Montmartre in Paris, France, June 2, 2020.  REUTERS/Charles Platiau
A city worker passes a construction site in the City of London during the morning rush hour in London, Britain, June 9, 2026. REUTERS/Chris J. Ratcliffe
Servers work at a Subway restaurant in Manhattan, New York City, U.S., November 23, 2021. REUTERS/Andrew Kelly

Overview

  • Thursday’s ISM services PMI rose to 55.4 as new orders jumped to their highest level since February 2023, pushing supplier delays and input prices sharply higher and increasing the chance the Fed will tighten policy.
  • Euro‑area private activity held at a modest expansion with a 51.6 services PMI, but national readings split sharply with France contracting at 48.0 and Germany just below 50 at 49.7.
  • Japan’s S&P Global services PMI climbed to 52.5 on stronger domestic demand while sustained input and output price pressures strengthened the case for further Bank of Japan action.
  • India’s HSBC services PMI rose to 54.1 and job creation hit a 15‑month high as firms hired to support customer service and digital operations, even though overall growth remains near multi‑year lows.
  • Canada’s services PMI plunged to 46.8 as new business fell amid escalating trade tensions and recent U.S. tariffs, and survey price gauges and geopolitical risks are helping keep policy tightening on the table for major central banks.