Improving services sector activity supports economic resilience

The S&P Global services PMI climbed to 51.2 from 50.7, signaling modest but continued expansion in the dominant sector of the U.S. economy. Because services represent the largest share of economic output, readings above 50 are closely watched as confirmation that consumer and business activity remains intact.

Services sector expansion tends to reduce recession probability assessments, which directly supports equity risk premiums and encourages investors to maintain or increase exposure to growth-oriented assets rather than rotating defensively.