US: Markit Services PMI improves to 56.7 vs 53 expected

• Markit Services PMI much higher than expectations in February.
• Composite Index rises to 56.0 in February from 51.1 in January.

The business activity in the US service sector gained momentum in February with IHS Markit's flash Services PMI rising to 56.7, up from 51.2 and above the 53 of market consensus. Furthermore, the Composite PMI edged higher to 56 from 51.1 in the same period.

 “Boosting the latest rise in business activity was a quicker increase in new work intakes. Companies noted the strongest expansion in sales since last July. International demand for US services also strengthened in February. With demand conditions improving, service providers continued to hire extra staff. The increase was marked and the fastest in nine months. On the price front, there were sharper increases in both input costs and output prices. Notably, the rate of charge inflation hit a series peak”, mentioned the report.