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US business activity grows more than expected in February - IHS Markit
Activity in the US manufacturing and services industries grew more than expected in February, according to preliminary data released on Wednesday.
IHS Markit's flash composite output index rose to 55.9 from 53.8 in January, hitting its highest level in almost two-and-a-half years and beating expectations for a reading of 54.4.
A reading above 50 indicates expansion, while a reading below signals contraction.
Meanwhile, the manufacturing purchasing managers' index increased to 55.9 from 55.5 the month before, coming in ahead of forecasts for a reading of 55.4 and pointing to the fastest improvement in overall business conditions since October 2014.
The PMI for the services industry also rose to 55.9, from 53.3 in January, reaching a six-month high.
Chris Williamson, chief business economist at IHS Markit, said: "Business activity growth accelerated markedly in February, suggesting the economy is growing at its fastest pace for over two years. The upbeat February PMI surveys are indicative of GDP rising at an annualised rate of 3.0%.
"Even faster growth is signalled for coming months. February saw the largest influx of new orders for almost three years, while business expectations about the year ahead jumped to the highest since May 2015. Such optimism encouraged firms to step up their hiring, with payroll growth reaching a two-and-a-half year high, underscoring the broad-based bullish mood across the business sector."