The S&P Global US Services PMI slipped to 52.3 in February 2026 from 52.7 in January, falling short of forecasts for a rise to 53 and marking the softest expansion in US services activity in 10 months, according to a flash estimate. New business inflows in the sector continued to grow, but at a slower pace, weighed down by a decline in export orders. This subdued client demand led firms to ease back on hiring, with employment rising only marginally.
At the same time, prices charged by service providers climbed to a seven-month high, matching their strongest level in more than three years. Input cost inflation remained elevated, though still below recent peaks. Looking ahead, companies stayed optimistic that the end of a harsh winter, along with lower interest rates and tax incentives, would bolster business activity over the coming year.
