Global Services Activity and New Orders Both Rise in February

The upturn in the global service sector extended to forty-three months in February, according to the latest PMI data. Companies scaled up output in response to improved inflows of incoming new business, leading to a further increase in payroll numbers.

The JPMorgan Global Services Business Activity Index — a composite index produced by JPMorgan and Markit in association with ISM and IFPSM — posted 53.3 in February, little changed from January's 53.4, but nonetheless at a four-month low. The average reading so far in Q1 2013 (53.4) is below that for Q4 2012 (54.0).