by Mike ‘Mish’ Shedlock
Rounding out the dismal services PMI reports that came out today, the J.P.Morgan Global Services PMI, shows the growth of global services activity hit a 40-month low in February.
J.P.Morgan Global Services PMI™
The rate of expansion of global service sector business activity slowed to a 40-month low in February. The J.P.Morgan Global Services Business Activity Index – a composite index produced by J.P.Morgan and Markit in association with ISM and IFPSM – fell to 50.7, a reading only moderately above the stagnation mark of 50.0.
National PMI data suggested that the US had shifted from being a driver to a drag on global services output growth. US services activity fell slightly for the first time in almost two-and-a-half years. However, the underlying dynamics of the US survey were less negative than the headline reading. Indices tracking new business, employment and future activity all pointed to slower rates of growth as opposed to outright contraction.