Services sector rebound fuels growth and inflation in developed economies

Services sector rebound fuels growth and inflation in developed economies

The flash PMIs show developed economies regaining momentum, despite rate hikes

February 22, 2023 / 10:57 AM IST

As per the PMI data, there’s a clear divide between the performance of the services sector and of manufacturing.

Central banks in the advanced economies will be a worried lot after looking at the Flash Purchasing Managers Indices (PMIs) for February 2023. The Composite PMIs, which measure activity in both the manufacturing and services sectors in the economy—specifically the private sector—saw an uptick in February in the US, the UK and the Eurozone, while it remained the same in Japan (see Chart 1).

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In the US and the UK, the composite PMI for February came in at an…

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