Why the U.S. economy looked better than global peers in February
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The U.S. economy looked better than some global peers' this month. An early read of economic activity shows steadiness alongside cooler prices, while activity in Europe remains sluggish.
What's new: A key survey shows cost pressures for manufacturers and service businesses eased notably in February as both sides of the economy continued to expand.
By the numbers: An early read of S&P Global's composite index of purchase managers ticked down just slightly to 51.4 — but remains above the level of 50 that suggests the economy is expanding.
- But the downtick was largely a result of a moderate slowdown in services. There was good news for manufacturers, however: That component soared to 51.5 — well above January, and the sharpest upturn for manufacturers since September 2022.
The other side: Across the Atlantic, the Euro area's parallel measure continued to signal activity was contracting, though at a slower pace.
- It shows that the eurozone's "deepest contraction since 2013 ... has persisted into 2024," S&P Global said, noting some signs of moderating.
What they're saying: In the U.S., it is "welcome news that both manufacturing and services are expanding again for the first time in three months," Chris Williamson, chief business economist at S&P Global, said in a release.
- He added the expansion "is being accompanied by subdued price pressures."
Of note: On the employment side in the U.S., overall businesses reported an increase in their workforces, though at a muted pace.
- A separate release Thursday morning from the Department of Labor showed jobless claims were the fewest in a month last week — a sign of still low layoffs across the economy.
