The latest data from the S&P Global Composite Purchasing Managers' Index (PMI) indicates a slowdown in U.S. economic growth, as the composite index fell to 50.4 in February from 52.7 in January. This marks a significant decline, signaling that while there is still expansion in the economy, the pace has notably decelerated.
The PMI is a crucial indicator for economic health, reflecting output in both the manufacturing and service sectors. A reading above 50 suggests economic growth, while a number below 50 indicates contraction. With February's figure just over the growth threshold, the data suggests a cooling demand for goods and services, affecting business activity and expansion trends across the United States.
Updated on February 21, 2025, these figures highlight the challenges faced by businesses amidst shifting market conditions. Analysts will be closely watching to see how factors such as consumer confidence, interest rates, and supply chain disruptions impact further PMI reports, looking for signs that the economy could stabilize or face further slowdown ahead.
