US ISM Non Manufacturing PMI at Fresh 2-Year Low

The ISM Non-Manufacturing PMI index declined 0.1 percentage points to 53.4 percent in February of 2016 from 53.5 in the previous month and compared to market expectations of 53.2. It is the lowest reading since February of 2014 as new orders and prices decreased and employment contracted for the first time in two years.

The Non-Manufacturing Business Activity Index increased to 57.8 percent, 3.9 percentage points higher than the January reading of 53.9 percent, reflecting growth for the 79th consecutive month at a faster rate. 

The New Orders Index registered 55.5 percent, 1 percentage point lower than the reading of 56.5 percent in January. 

The Employment Index decreased 2.4 percentage points to 49.7 percent from the January reading of 52.1 percent and indicates contraction after 23 consecutive months of growth. This is the first time the employment index has contracted since February 2014. 

The Prices Index decreased 0.9 percentage point from the January reading of 46.4 percent to 45.5 percent, indicating prices decreased in February for the fourth time in the last six months. 

The 14 non-manufacturing industries reporting growth in February — listed in order — are: Accommodation & Food Services; Management of Companies & Support Services; Real Estate, Rental & Leasing; Utilities; Construction; Finance & Insurance; Transportation & Warehousing; Professional, Scientific & Technical Services; Public Administration; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Educational Services; Information; and Wholesale Trade. The three industries reporting contraction in February are: Mining; Arts, Entertainment & Recreation; and Retail Trade.

US ISM Non Manufacturing PMI at Fresh 2-Year Low

ISM | Joana Taborda |
3/3/2016 3:11:10 PM