The activity in the United States' service sector accelerated slightly in February, with the Services Purchasing Managers' Index (PMI) going from January's 52.8% to 53.5% and surpassing market expectations, the Institute for Supply Management (ISM) revealed in its report published on Wednesday.
The New Orders Index rose by 0.9 percentage points month-on-month to 52.2%. The Employment Index soared by 1.6 percentage points to 53.9%. The Inventory Sentiment Index jumped by 1.2 percentage points to 54.7%. Meanwhile, the Business Activity Index declined by 0.1 percentage points to 54.4.
"February was the third month in a row with all four subindexes that directly factor into the Services PMI ... in expansion territory, the first time this has happened since May 2022," ISM Services Business Survey Committee Chair Steve Miller commented. "Anxiety continues; however, over the potential impact of tariffs. Some respondents indicated that federal spending cuts are having negative impacts on their business forecasts."
