US Services industry expansion slows to its weakest pace since April 2025 as sales growth moderates

US Services Sector Experiences Slower Growth in February

According to the latest S&P Global PMI survey, the US services industry saw only slight expansion in activity during February. The pace of new business growth was also moderate, with both sales and overall activity impacted by unfavorable weather conditions.

Weaker demand led to restrained hiring and kept business optimism below average levels. Meanwhile, inflation in selling prices picked up, driven by higher costs from tariffs and increased labor expenses. The main S&P Global US Services PMI® Business Activity Index declined for the month.