Robust Expansion in US Service Sector Activity in February
US February Final S&P Global Services PMI Data
Prelim was 51.3. Prior was 52.0. Composite index 52.5 vs 51.4 prelim. Prior composite index 52.0.
New business inflows have now risen for four straight months. The rate of input cost inflation eased again to the slowest since October 2020. Business confidence dropped to the lowest since last November. Growth in total sales was led by domestic demand, as foreign customer interest dwindled and drove a renewed fall in new export orders in February.
Market Outlook and Analysis
This sets the stage for the ISM services number at the top of the hour. The commentary in this report is positive. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said: 'A further robust expansion of service sector activity in February follows news of faster manufacturing output growth.'
The goods and services producing sectors collectively reporting the sharpest growth since last June, hinting at a further quarter of solid GDP growth. The acceleration occurred despite a cooling of growth in financial services, linked to the recent pull-back in rate cut expectations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.