Markit's US services PMI in contraction territory

The latest data from Markit confirmed that business activity in the US services sector contracted in February.

Markit’s final US services purchasing managers’ index fell to 49.7 in February from 53.2 the previous month.

This was below the 'flash' estimate of 49.8 and under the 50 mark that separates contraction from expansion for the first time in almost two and half years.

Chief economist Chris Williamson said: “Business activity stagnated in February as malaise spread from the manufacturing sector to services. The Markit PMIs are signalling a stagnation of the economy in February, suggesting growth has deteriorated further since late last year.

“Prices pressures are waning again in line with faltering demand. Average prices charged for goods and services are dropping once again, down for the first time in five months, as firms compete to win new business.”