The US service economy expanded at its fastest pace since mid-2022, with the Institute for Supply Management's services index rising 2.3 points to 56.1 in February. This reading exceeded all economist projections in a Bloomberg survey, signaling robust momentum in the sector. The expansion marks a significant acceleration from recent months.

Michael McKee reported on Bloomberg Television that demand growth drove the improvement, with businesses reporting stronger order volumes and customer activity. The 56.1 reading represents expansion territory, as any figure above 50 indicates growth. February's performance was the strongest since July 2022, suggesting the service sector is gaining traction after a period of more modest expansion.

The broad-based improvement across service industries points to a resilient economy despite ongoing challenges. Higher demand translated into increased business activity, with companies reporting busier operations and expanded capacity utilization. This acceleration in services activity could have positive implications for employment and consumer spending.