FX.co ★ US Service Sector Growth at Over Three-Year High

The US ISM Services PMI rose to 56.1 in February 2026 from 53.8 in January, exceeding market expectations of 53.5 and signaling the fastest pace of expansion in the sector since August 2022. The improvement was led by a strong rebound in business activity, with that subindex climbing to 59.9 from 57.4, its highest level since September 2024. New orders posted their sharpest increase in 17 months (58.6 vs 53.1), while employment growth accelerated to its strongest reading in a year (51.8 vs 50.3). The Supplier Deliveries Index edged down to 53.9 from 54.2 but remained above the 50 threshold for a 15th consecutive month, indicating slower deliveries consistent with firm demand. At the same time, the Prices Index eased to 63, its lowest level since March 2025, yet stayed above 60, pointing to ongoing cost pressures.