US services sector expands 1st time since June

Pace of growth only marginal as some firms highlight customer hesitancy amid inflation, interest rate hikes, says report

By Ovunc Kutlu

ISTANBUL (AA) – The US services sector in February showed an expansion for the first time since June last year, according to a report by S&P Global on Tuesday.

The S&P Global Flash US Services Business Activity Index posted 50.5 in February, up from 46.8 in January. The index beat the market expectations of 47.2.

"The pace of growth was only marginal, however, as some firms continued to highlight customer hesitancy following hikes in interest rates and inflation," S&P Global said in a statement.

The manufacturing purchasing managers' index (PMI), which measures the activity of managers in the manufacturing sector, rose 0.9 points to 47.8, up from 46.9 last month, according to flash estimates by the financial services company.

The latest reading signaled a further deterioration in manufacturing performance, said S&P Global, adding: "Manufacturers registered a fourth successive monthly decline in production during February."

Kaynak:

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