S&P Global Services PMI
S&P Global Services PMI is a monthly survey measuring activity in the U.S. services sector. It serves as an alternative and complement to ISM Services PMI, but with a critical structural difference: the headline index is a single busines…
At A Glance#
| Field | Detail |
|---|---|
| Provider | S&P Global Market Intelligence (formerly Markit) |
| Survey / Tool | S&P Global US Services PMI Survey |
| Frequency | Monthly — Flash (preliminary) released mid-month; Final released at start of following month |
| Indicator Type | Leading (with a coincident element) |
| Main Use | Alternative/complement to ISM Services; Flash release provides an early read; used for international comparisons |
| Timeframe Tracked | Short-Term (1–6 months) |
| Source | https://www.pmi.spglobal.com/Public/Home/PressRelease/ffcbf96e32a24ace8a4711b3a4f6d3f3 |
What It Is#
S&P Global Services PMI is a monthly survey measuring activity in the U.S. services sector. It serves as an alternative and complement to ISM Services PMI, but with a critical structural difference: the headline index is a single business activity question, not a composite of multiple sub-indexes. This makes it simpler to collect and more directly reflective of current conditions, but it also means it is not directly comparable to the S&P Global Manufacturing PMI headline.
S&P Global uses the same methodology across 40+ countries, making it useful for cross-country services activity comparisons.
For how PMI and the diffusion index formula work, see PMI Diffusion Index Explained.
Who Provides It#
S&P Global Market Intelligence, formerly known as Markit.
How It Is Collected#
- Questionnaires are sent to a panel of approximately 400 service-sector companies.
- Survey responses are collected in the second half of each month.
- Respondents indicate whether activity increased, decreased, or stayed the same compared with the previous month.
- The panel is stratified by:
- Detailed sector
- Company workforce size
- Contribution to GDP
- S&P Global strictly defines "services," excluding some areas (such as retail and energy) that the ISM Services survey may include.
Sectors covered:
- Consumer services (excluding retail)
- Transport
- Information
- Communication
- Finance
- Insurance
- Real estate
- Business services
Variables surveyed:
- Business activity
- New business
- New export business
- Outstanding business
- Employment
- Input prices
- Prices charged
- Future activity
How It Is Computed#
S&P Global calculates diffusion indexes:
Critical structural difference from Manufacturing PMI:
The headline S&P Global Services PMI is actually the Services Business Activity Index — it is based on a single question asking companies to rate the current level of business activity compared with one month earlier.
This is intentionally simple by design, but it means:
- The headline is not a weighted composite like the Manufacturing PMI — it is a single diffusion index.
- S&P Global explicitly notes it is not directly comparable with the headline Manufacturing PMI.
- The forward-looking sub-components (new business, employment, future activity) exist in the report but are separate — they are not blended into the headline.
Reading the number:
- Above 50 → services activity increased vs. prior month
- Below 50 → services activity decreased vs. prior month
Indicator Type#
Leading, but with a coincident element. The headline business activity index reflects current monthly activity, which places it close to coincident. However, markets treat the S&P Global Services PMI as leading because:
- It is released early (Flash mid-month)
- The broader report includes forward-looking sub-components: new business, outstanding business, employment, and future activity expectations
- S&P Global states PMI data are used to anticipate changes in official data such as GDP, employment, and inflation
Why It Matters#
The Flash release mid-month gives traders and economists an early read on services health weeks before ISM's final data. Because the report also covers forward-looking sub-components separately, analysts read the full release — not just the headline — to gauge the direction of travel.
The narrow sector definition (excluding retail and energy) means it can diverge from the ISM Services reading in ways that reflect genuine sector differences rather than methodology noise.
ISM vs S&P Global Services#
| Feature | ISM Services | S&P Global Services |
|---|---|---|
| Panel size | ~400+ companies | ~400 companies |
| Sector scope | Broader — includes retail, energy, others | Narrower — excludes retail, energy |
| Headline construction | 4-component equal-weighted composite | Single business activity question |
| Composites blended into headline | Business Activity, New Orders, Employment, Supplier Deliveries | None — headline is just Business Activity |
| Flash release | No | Yes — mid-month preliminary |
| Comparability to Mfg PMI | Structurally similar (composite) | Not directly comparable (single question vs. composite) |
See PMI Diffusion Index Explained for the full ISM vs S&P Global breakdown.
Related Notes#
- ISM Services PMI — the alternative services gauge; 4-component composite; no Flash
- S&P Global Manufacturing PMI — manufacturing counterpart; note the structural difference in headline construction
- PMI Diffusion Index Explained — diffusion index formula and ISM vs S&P Global comparison