Feb 20 (Reuters) – U.S. business activity expanded in February at the slowest rate in 10 months as orders receded at factories, new business growth slackened for services firms and employment growth stalled across the board, a survey showed on Friday.
S&P Global said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, slipped this month to 52.3 – the lowest since April – from 53.0 in January. A reading above 50 indicates expansion in the private sector. Both services and manufacturing flash PMIs edged down this month.
“The PMI data so far this year are indicative of GDP rising at an annualized rate of just 1.5%, signalling a marked cooling of the economy in the first quarter compared to the robust growth rates seen in the second half of last year,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
Earlier on Friday, the Commerce Department reported U.S. gross domestic slowed more than expected in the fourth quarter amid disruptions from last year’s government shutdown and a moderation in consumer spending. S&P said its service-sector PMI declined to 52.3 from 52.7 in January. Economists polled by Reuters had estimated the services PMI at 53.0. The manufacturing PMI slid to a seven-month low of 51.2 from 52.4 last month and was also shy of a consensus forecast of 52.6. New orders fell for the second time in three months. Employment in both sectors dropped to a near stand-still level of 50.2.
( Reporting By Dan Burns; Editing by Chizu Nomiyama)
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