US S&P Global Services PMI Final (Feb) 51.7 vs. Exp. 52.3 (Prev. 52.3, Rev. From 52.7)

• “Combined with a sharp slowing of manufacturing output growth in February, waning service sector performance indicates that the economy is growing at an annualized rate just below 1.5% so far in the first quarter, though hopefully this will improve somewhat if we see a weather-related bounce back in March".
• "...optimism about the year ahead remains subdued by concerns over government policies, and is especially low in the service sector...".

The Final February S&P Global Services PMI came in below expectations, suggesting a slowdown in service sector activity alongside a tightening manufacturing output. This data indicates that the economy is likely growing at an annualized rate just under 1.5%, raising concerns about potential headwinds for monetary policy given the subdued outlook for the service sector. Watch for any shifts in risk sentiment or USD positioning as participants digest this weaker-than-expected data.