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.