US Services PMI and ADP Report Surpass Expectations: Equity Markets Rebound
The Institute for Supply Management (ISM) has reported a significant uptick in the US Services PMI, climbing from 53.8 in January to a robust 56.1 in February.
This figure notably exceeds the anticipated consensus of 53.5 and marks the highest level observed since August 2022, heralding an impressive surge in productivity within the services sector.
This positive development follows the ISM Manufacturing PMI update released on Monday, which ascended to 52.4—surpassing the forecasted 51.8.
Given that values above the critical 50.0 mark indicate expansion, both these indices currently affirm that the industrial and services sectors in the United States are in an expansionary phase.
Nonetheless, it is important to acknowledge that the surveys were conducted prior to the recent intensification of geopolitical conflicts in the Middle East. The concomitant rise in energy prices since data collection may temper future managerial expectations amid increasing uncertainty.
Simultaneously, Automatic Data Processing, Inc. (ADP) disclosed that private-sector employment growth surged from a modest 11,000 in January to an impressive 63,000 in February, significantly outstripping the anticipated 50,000. Leading the charge in job creation was the “Education and Health Services” sector, which saw an increase of 58,000.
Conversely, “Professional and Business Services” experienced a decline of 30,000 positions. While the ADP report solely addresses private-sector payrolls, it is often regarded as a bellwether for the official Non-Farm Payroll (NFP) report released on the first Friday of each month.
Fueled by the commendable Services PMI and a resilient labor market, US equity indices staged a recovery from recent sell-offs spurred by geopolitical tensions.
The S&P 500 increased by 0.78%, reaching 6,869, the Dow Jones Industrial Average rose by 0.49% to 48,739, and the Nasdaq 100 advanced by 1.51% to 25,093 points.
Figure 1. United States ISM Services PMI (2023–2026). Source: Data from the Institute for Supply Management; Figure obtained from Trading Economics.
Chinese Manufacturing PMI Declines, Falls Short of Analyst Predictions
In response to the data, the FTSE China A50 index rose by 0.59% to 14,529, while the Hang Seng index experienced a gain of 1.60%, reaching 25,534.
Both indices exhibited a technical rebound after experiencing two consecutive days of steep declines attributed to escalating geopolitical tensions and energy security concerns.
Australian GDP Growth Exceeds Expectations; Australian Dollar Rebounds
The Australian Bureau of Statistics released figures indicating that Gross Domestic Product (GDP) advanced by 0.8% in the fourth quarter of 2025. This growth surpasses the 0.5% recorded in the third quarter and exceeds analyst expectations of 0.6%.
Consequently, the year-on-year (YoY) growth rate quickened from 2.1% to 2.6%. Following this unanticipated boost in economic activity, the AUD/USD pair appreciated by 0.55%, climbing to 0.7072.
Source link: Equiti.com.
