The S&P Global U.S. Services PMI Business Activity Index fell to 51.7 in February (-1.0 pts MoM from 52.7), signaling the slowest services sector expansion in ten months amid weaker demand and adverse weather effects.

• Services activity slowed to 51.7 in February (Jan: 52.7) but remained above the 50 expansion threshold, extending the sector’s current growth streak to thirty-seven consecutive months.

• New business increased for the twenty-second straight month, though the pace of growth cooled from January as adverse weather and uncertainty around tariffs and government policies constrained demand.

• Export demand weakened further, with new export business declining marginally and extending the current contraction in international orders to three consecutive months.

• Outstanding business increased at a steeper pace as activity growth lagged behind new orders, marking a continued accumulation of backlogs that has now persisted for one year.

• Employment rose for a second successive month, but hiring remained fractional as firms primarily filled existing vacancies while broader hiring activity was limited by cost-cutting measures.

• Input costs rose sharply in February, driven largely by higher labor-related expenses and tariff-related cost pressures reported by survey participants.

• Selling prices increased at a faster pace during the month as service providers passed higher operating costs through to customers.

• The S&P Global U.S. Composite PMI Output Index fell to 51.9 in February (Jan: 53.0), indicating slower overall private sector growth as both manufacturing and services output expansions moderated.

The S&P Global US Services PMI edged up to 52.7 in January (from 52.5 in December), extending the expansion streak to exactly three years, though growth remained below typical 2025 levels.

• New business inflows strengthened at the start of 2026, supported by new client wins and improved domestic demand, even as low consumer confidence and uncertainty limited overall gains.

• New export business fell sharply to the weakest level since November 2022, reflecting a steep reduction in foreign demand linked to tariffs and an uncertain trading environment.

• Backlogs of work increased solidly for an eleventh consecutive month and at the fastest pace since July, indicating ongoing capacity pressures across service providers.

• Employment rose marginally after December’s slight decline, showing modest hiring that remained weak relative to the long-term survey trend.

• Input cost inflation remained elevated but eased to the slowest pace since October, driven by tariffs alongside higher payroll and supplier costs.

• Output charges continued to rise but at a softer rate than in December, pointing to slower price increases amid competition despite still-high cost pressures.

• The US Composite PMI Output Index increased to 53.0 (Dec: 52.7), signaling a firmer overall expansion across both services and manufacturing.

The S&P Global US Services PMI fell to 52.5 in December (from 54.1 in November), signaling slower services activity growth amid cooling demand late in the year.

• Business activity remained in expansion for a 35th consecutive month, but December marked the slowest growth rate in eight months, reflecting softer momentum as 2025 closed.

• New business rose only marginally, the weakest increase in 20 months, as firms cited squeezed client budgets, demand uncertainty, and tariff-related instability, particularly for foreign orders.

• New export business declined for the second time in three months, with the pace of contraction the steepest since May, highlighting external demand softness.

• Employment edged down slightly, ending a nine-month run of job growth, as cost pressures, budget constraints, and slower demand limited hiring despite modest increases in backlogs.

• Input cost inflation accelerated to a seven-month high, driven by tariffs, higher supplier charges, and labor-related expenses, remaining well above the historical average.

• Selling prices rose at a faster pace as firms attempted to pass through higher costs, marking the strongest increase since August and underscoring margin pressure.

• The US Composite PMI eased to 52.7 (Nov: 54.2), consistent with slower growth across both services and manufacturing while remaining above the 50 threshold.