US: Markit Services PMI improves modestly to 58.9 in February vs. 57.5 expected

• Markit Services PMI in US rose more than expected in February.
• US Dollar Index struggles to stage a meaningful recovery. 

The economic activity in the US' service sector expanded at a stronger pace in February than it did in January with the IHS Markit's Services PMI rising to 58.9 (preliminary) from 53.8. This reading came in better than the market expectation of 57.5.

Key takeaways

"The rise in business activity was the strongest for almost six years, as service sector firms noted greater client demand."

"The rate of charge inflation was the second-fastest on record (behind only November 2020)."

"Ongoing COVID-19 restrictions led to hesitancy regarding the year-ahead outlook, as service providers registered softer output expectations."

Market reaction

This report doesn't seem to be having a noticeable impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was down 0.3% on the day at 90.30.