S&P Global US services PMI cools to 51.7 in February

4th Mar 2026 15:02

(Sharecast News) - S&P Global's services and composite PMIs both cooled in February, with both surveys pointing to the slowest expansion in ten months.

The US services PMI slipped to 51.7 from 52.7 in January, revised down from the flash reading of 52.3 and missing market expectations for a print of 53 - signalling a softer rise in new business, held back by a drop in export orders as overseas clients grappled with uncertainty around retaliatory trade policies.

Firms continued to add staff at a solid pace thanks to easier hiring conditions, though cost‑cutting efforts kept a lid on broader workforce expansion, while input inflation picked up, driven by labour costs, prompting a further rise in output charges.

The composite PMI, which combines the manufacturing and services PMIs, also eased, falling to 51.9 from 53.0 in January and coming in below the preliminary estimate of 52.3. Growth was constrained by weaker output across both sectors, alongside a moderation in new business midway through the first quarter.

Employment rose only marginally as confidence remained below its long‑run average, while price pressures were little changed, with both input costs and selling prices still running well above their historical norms.

Reporting by Iain Gilbert at Sharecast.com