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Service sector activity expands in-line with expectations
(Kevork Djansezian / Getty Images) Service sector activity expanded in-line with expectations in February, according to Markit Economics.
The latest services PMI from Markit came in at 57.1, basically in-line with expectations.
Expectations were for the reading to come in at 57.0, up from 54.2 in January. This is the highest reading for the index since October.
In its release, Markit Economics said, "U.S. service providers indicated stronger underlying
growth trends in February, with output and new business volumes both rising at the fastest rates for four months. Staff recruitment also continued to rise during the latest survey period, which service sector companies linked to increased workloads. Meanwhile, input price inflation was unchanged from January’s 50-month low, helped by downward pressure on costs from lower fuel and energy bills."
Chris Williamson, chief economist at Markit, said following the release:
The pace of US economic growth jumped to a four month high in February, according to Markit’s PMI survey data. Business picked up especially towards the end of the month, when the impact of bad weather on the East Coast and port delays on the West Coast began to clear, which suggests this may be a temporary upturn.
Even with the strong growth recorded in February, the average reading across the manufacturing and
services surveys for the first quarter so far is up only slightly compared to the fourth quarter of last year, meaning growth this year is running at a rate similar to the 2.2% annualised pace seen late last year.
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