The mixed economy of the USA has faced a slowdown: February PMI figures confirm weakening in manufacturing and services.

February brought alarming signals for the American economy. Preliminary data from the S&P Global manufacturing PMI indicate a slowdown in business activity in this key sector of the mixed economy. Measuring economic confidence and business activity levels, the PMI serves as an important barometer of the nation’s economic health.

Manufacturing Sector Reaches Seven-Month Low

The manufacturing PMI fell to 51.2, marking the lowest level in the past seven months. This decline reflects slowing orders, reduced production, and weakening investment demand in the manufacturing sector. Although the reading remains above 50, which separates growth from contraction, its proximity to this threshold indicates economic fatigue. In a mixed economy, manufacturing traditionally forms the foundation for job creation and economic growth.

Service Sector Shows Signs of Income Pressure

Alongside manufacturing, the service sector also faced internal pressures. The preliminary S&P Global services PMI was 52.3, marking a ten-month low. This points to a slowdown in demand for services and a decline in business activity in the tertiary sector. When both of the largest sectors of a mixed economy weaken simultaneously, it often signals more serious macroeconomic challenges.

Composite Index Confirms Broad Economic Slowdown

The most concerning signal comes from the S&P Global composite PMI, which combines manufacturing and services data. Its preliminary reading was 52.3 — the lowest in ten months. This indicator reflects a comprehensive picture of slowing overall economic activity. For a mixed economy where manufacturing and services are closely interconnected, such simultaneous weakening of both sectors demonstrates systemic deceleration.

What This Means for the Development of the Mixed Economy

February PMI data serve as a clear indicator that the U.S. mixed economy is entering a consolidation phase. Coordinated weakening across manufacturing, services, and overall business activity suggests that demand from both businesses and consumers is under pressure. Analysts are closely watching whether these figures represent a temporary correction or the start of a longer-term slowdown. For the U.S. mixed economy, where the interaction between government and private sectors remains critically important, such cyclical fluctuations require careful monitoring and potential policy adjustments.