US February Services PMI Final Reading at 51.0... Exceeds Market Expectations

The final reading of the US February Services Purchasing Managers' Index (PMI) exceeded market expectations.

According to the PMI report released by S&P Global on the 5th (local time), the US February Services Purchasing Managers' Index final reading was 51.0, surpassing market expectations (49.7).

The Services PMI index announced this time recorded a lower figure than last month (52.9), suggesting that the US services sector is contracting compared to January.

S&P Global stated through its report that "the services sector is still maintaining growth," but added that "the pace of expansion is at its slowest level since November 2023." They further added, "The slowdown in new business growth had an impact."

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said, "Although the final PMI figures improved compared to the preliminary announcement, the service sector environment has significantly deteriorated compared to the strong growth at the end of last year," adding that "service providers have significantly downgraded their future growth outlook due to uncertainty about new federal government policies (tariffs, trade policies, budget cuts)."

Meanwhile, the PMI uses 50 as a baseline to gauge whether the services sector is expanding or contracting.