The S&P Global US Composite PMI fell sharply to 50.4 in February 2025 from 52.7 in January, signaling a near-stagnation in private sector activity, according to a preliminary estimate.
US composite PMI falls to 17-month low
This marked the slowest rate of business expansion since September 2023, as a renewed decline in services output offset stronger growth in manufacturing. New orders saw a significant slowdown, while employment levels edged lower amid rising uncertainty and cost pressures.
Input cost inflation accelerated
On the pricing front, input cost inflation accelerated to its highest level since last September, while the pace of selling price increases slowed to a three-month low. Meanwhile, business confidence for the year ahead slumped to its weakest level since December 2022, excluding last September. The decline in sentiment was attributed to concerns over federal government policies, including domestic spending cuts and tariffs, as well as worries about rising costs and broader geopolitical risks.
