The AiG Services PMI is out this morning and shows steady improvement, up 3.1 points to 48.5 in February:
Sales and capacity are also trending upwards:
As are new orders:
In fact, it’s quite clear that services will very soon be back in expansionary territory on rate cuts:
This move will have limits, however. Credit is not available to fund a sustained and aggressive services expansion cycle so long as the banks can’t borrow offshore.
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