The S&P Global flash US Services PMI rose to 58.7 in September from 56.5 in August, exceeding economists’ forecast of 55.8. Readings above 50 indicate expansion, making the latest figure the strongest in the PMI series since the recovery that began in mid-2020. The index surveys purchasing managers across industries including finance, real estate, healthcare and hospitality on new orders, employment, pricing and output. The US reading outpaced same-day figures for the euro area composite PMI at 53.1, Germany’s services PMI at 52.9 and the UK’s services PMI at 51.7. The strength could complicate the Federal Reserve’s policy outlook because robust services activity can support persistent price pressures. Bond markets may respond by reducing expectations for near-term rate cuts, with the two-year Treasury yield particularly sensitive to changes in interest-rate expectations. S&P Global’s detailed sub-indexes, including new orders, employment and input costs, will provide further clues about the drivers of the result.