Weather & Weak Demand Drive US PMIs Down To 10-Month Lows In February, But...

The initial February PMIs from S&P Global reveal a downturn in the US economy after a period of optimistic survey data. Both Manufacturing and Services PMIs experienced significant drops compared to January. The Services PMI hit a ten-month low, while the Manufacturing PMI reached a seven-month low. This decline pulled the US Composite PMI to its lowest point since April of the previous year. Weakened demand, high prices, and adverse weather contributed to this slowdown in business activity. Consequently, output experienced its slowest expansion in ten months. Customer demand has softened, leading to a decrease in factory orders and reduced job growth across sectors. The PMI data suggests a significantly cooler economic growth rate for the first quarter. Although some companies anticipate a temporary slowdown due to weather, business growth expectations are notably improving. However, overall confidence remains low due to concerns about the political climate and policies like tariffs. Tariffs are blamed for rising prices, which are negatively impacting affordability and limiting business sales.