The U.S. services industry experienced slower growth in February, with a slight decline in employment. However, there was an increase in new orders, reaching a six-month high. This cooling of growth in the service sector is attributed to the decrease in employment, even though orders and business activity showed positive momentum. The Institute for Supply Management reported that the service-sector Purchasing Managers’ Index (PMI) fell to 52.6% in February from 53.4% in the previous month. Despite this slight dip, economic activity in the services sector still expanded for the 14th consecutive month, indicating overall resilience and stability in the tertiary sector of the economy.

Slower Growth in US Service Sector

The Institute for Supply Management recently released data showing a slowdown in the growth of the U.S. service sector during February. This was partially driven by a decrease in employment, while the measures of new orders and business activity both demonstrated a positive upswing. The Services PMI® registered at 52.6%, compared to the previous month’s 53.4%. Despite the dip, this expansion marks the 14th consecutive month of growth in the services sector, indicating ongoing stability and a strong performance in the tertiary sector of the economy.

In summary:

1. The U.S. services industry experienced slower growth in February.
2. The decline in employment contributed to the cooling of growth in the sector.
3. However, new orders increased to a six-month high.
4. The Institute for Supply Management reported a decrease in the service-sector PMI from 53.4% to 52.6%.
5. Despite the slight dip, economic activity in the services sector expanded for the 14th consecutive month.

Source: PR Newswire