According to the February ISM survey of the service sector, business activity remained moderately healthy. The composite index was actually a bit stronger than expected (56 vs. 55). The employment subindex rose to a relatively high level, suggesting somewhat stronger economic growth in the months to come. Importantly, there is no evidence in these figures of any weakness or impending recession, and no sign either of any deflationary threat. On balance, this is a "steady as she goes" report that is moderately encouraging. Conditions in the Eurozone service sector remain somewhat depressed, however.
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