US Services Growth Slows Less than Expected


The ISM Non-Manufacturing PMI index for the United States edged down to 59.5 in February of 2018 from an over 12-year high of 59.9 in January, beating market forecasts of 59. A slowdown was seen in employment while production and new orders rose faster; price pressures eased; and the outlook for business conditions and the economy remained positive.

Employment eased (55 from a record high of 61.6) while faster increases were seen for business activity/production (52.8 from 59.8); new orders (64.8 from 62.7, the highest since August of 2005); backlogs of orders (56 from 50.5); and new export orders (59.5 from 58). Also, inventories rebounded (53.5 from 49); price pressures eased (61 from 61.9); supplier delivers were steady (at 55); and inventory sentiment was flat (at 61). 

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

US Services Growth Slows Less than Expected


ISM | Joana Taborda | joana.taborda@tradingeconomics.com
3/5/2018 3:13:10 PM