US Services Sector Experiences a Minor Dip

The United States' service sector witnessed a slight decrease in activity during February, as reported by the Institute for Supply Management (ISM). The Services Purchasing Managers' Index (PMI) adjusted from 53.5% in January to 50.8%, yet it remained within the expansion territory.

Key Indexes Reflect Mixed Signals

The New Orders Index saw a decline of 1.8 percentage points to 50.4%, whereas the Inventory Sentiment Index and the Business Activity Index experienced increases of 1.9 and 1.5 percentage points, reaching 56.6% and 55.9%, respectively. Notably, the Employment Index dropped significantly by 7.7 percentage points to 46.2%, indicating a contraction.

Impact of Tariffs and Government Spending Concerns

"This month, there's been a notable rise in reports of cost increases linked to tariff activities. Despite these concerns and worries over potential future tariffs and reduced government spending, the near-term sentiment remains balanced," explained Steve Miller, Chair of the ISM Services Business Survey Committee.