US Composite PMI Takes a Slight Dive in February

The United States Purchasing Managers' Index (PMI) Composite Output Index, which measures the combined output of the services and manufacturing sectors, registered at 51.6 in February. Although this figure exceeded expectations, it marked a decrease from January's 52.7, as reported by S&P Global on Wednesday.

Services Sector Growth Hits a Snag

In the services sector, the PMI Business Activity Index stood at 51.0, indicating no change and signaling the slowest growth rate since November 2023. This stagnation reflects the sector's struggle to maintain its growth momentum amidst various challenges.

Economic Outlook Clouded by Uncertainty

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, highlighted growing concerns among service providers. "Expectations for output growth have been sharply revised downward due to worries over slower demand growth and the uncertain impact of new government policies, including tariffs, trade policies, and federal budget cuts," Williamson stated.