US Services Sector Growth At 16-Month High: ISM

The ISM Non-Manufacturing PMI index rose to 57.6 in February of 2017 from 56.5 in January and beating market expectations of 56.5. It is the highest reading since October of 2015, boosted by a surge in activity and rising new orders and employment. The majority of service providers indicated a positive outlook on business conditions and the overall economy although some uncertainty persists.
ISM | Joana Taborda | 3/3/2017 4:28:43 PM
The Non-Manufacturing Business Activity Index increased to 63.6 percent, up 3.3 percentage points from January. It is the highest reading since February 2011, when the index registered 63.8 percent. 

The New Orders Index rose 2.6 percentage points to 61.2 percent, the highest since August 2015, when it came in at 62.7 percent.

The Employment Index went up 0.5 percentage point to 55.2 percent.

Additional increases were registered in inventories (4 percentage points to 52 percent), backlog of orders (4 percentage points to 54 percent) and new export orders (9 percentage points to 57 percent). In contrast, declines were recorded for supplier delivers (-2 percentage points to 50.5 percent), imports (-3 percentage points to 51 percent) and prices (-1.3 percentage points to 57.7 percent).

The 16 non-manufacturing industries reporting growth in February are: Utilities; Mining; Management of Companies & Support Services; Other Services; Accommodation & Food Services; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Finance & Insurance; Public Administration; Educational Services; Wholesale Trade; Arts, Entertainment & Recreation; Retail Trade; Transportation & Warehousing; and Construction. The two industries reporting contraction in February are: Real Estate, Rental & Leasing; and Information.

US Services Sector Growth At 16-Month High: ISM