US PMI
  • Prior was 52.9
  • Composite 51.6 vs 50.4 prelim
  • Prior composite was 52.7

These are some solid upward revisions to the final readings but are still declines from the prelim data.

The ISM services data is due at the top of the hour. The consensus is for a slight dip to 52.6 from 52.8 and this number highlights a better chance that we get there. Eyes will be on the employment component in light of the soft ADP number today.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence

"The final PMI is an improvement on the earlier flash reading but still paints a worryingly weak picture of service sector business conditions compared to the buoyancy recorded late last year.
"Current output growth has downshifted markedly so far this year from a booming rate of expansion in December to a disappointingly sluggish pace in February.
"Expectations for output growth have also been revised sharply lower as service providers have become increasingly worried over signs of slower demand growth and uncertainty over the impact of new government policies, ranging from tariffs and trade policy to federal budget cutting.
"The strong private sector hiring seen late last year has consequently gone into reverse, with a steep fall in backlogs of work hinting at further job losses to come.
"Adding to the gloomier picture in February was a sharp rise in costs, which companies were often unable to pass on to customers due to weak demand. While this reduced pricing power is good news for inflation, it’s potentially bad news for profitability."
Source: Forex Live