Inflation Accelerates as US Service Activity Expands for 1st Time in 8 Months: S&P Global
The U.S. services sector returned to growth for the first time in eight months, but selling price inflation accelerated, placing “Team Transitory back on the defensive.”
In February, the S&P Global Services Purchasing Managers’ Index (PMI) climbed to 50.6, up from 46.8 in January; anything above 50 indicates expansion. This represented the first positive PMI reading since June 2022.
The monthly report found that new business fell at the slowest pace since October amid lackluster domestic and foreign client demand. New export orders tumbled for the ninth month, while work backlogs remained unchanged. Employment levels were solid last month.
Economists and market observers are paying attention to the PMI price pressures. Input cost inflation experienced the second-slowest growth since October 2020, and the rate of selling price inflation accelerated to a five-month high….