By Austen Hufford 
 

The U.S. private sector grew at the fastest pace since November 2015, according to a report released Wednesday.

Markit said confidence about the outlook for activity over the next 12 months reached its strongest since May 2015, as survey respondents cited greater sales volumes and hopes for a sustained improvement in U.S. economic conditions. Still, cost pressures continued to rise in February, with the latest increase in average input prices being the sharpest since 2013.

The Flash U.S. Composite PMI Output Index, a survey from IHS Markit that takes the temperature of the private sector, grew to 55.9 in February, from 53.8 in January, and was a 27-month high. Results above 50 separate expansion from contraction.+

Markit said U.S. businesses showed a "marked improvement" in business activity in Febuary.

The Flash U.S. Manufacturing PMI Index rose to a 40-month high, coming in at 55.9 in Feburary from 55.5 last month. Economists polled by The Wall Street Journal were predicting 55.3.

The Flash U.S. Services PMI Business Activity Index was 55.9, up from 53.3. Economists polled by The Wall Street Journal were predicting 54.0.

The final Febuary reports will be released March 1 for manufacturing, and March 5 for services and composite indicators.

Write to Austen Hufford at Austen.Hufford@wsj.com

(END) Dow Jones Newswires

February 21, 2018 10:45 ET (15:45 GMT)