U.S. Business Activity Slows as Europe’s Industrial Rebound Drives Growth

Recent economic data indicates a deceleration in U.S. private-sector activity for February 2026. The slowdown is largely attributed to rising operational costs for firms following the implementation of new tariffs. Conversely, European economic activity expanded at a faster-than-anticipated pace during the same period. Europe's growth was primarily fueled by a significant rebound in its industrial sector, signaling a robust cyclical recovery. This divergence in economic momentum is expected to put upward pressure on the Euro against the U.S. Dollar. Market analysts suggest that these trends may favor European equities over their U.S. counterparts in the near term.