The ISM Non-Manufacturing Index registered 57.6 points in February, 1.1 percentage points above January’s figure and the highest reading since October 2015. This was the 86th consecutive month of growth. Sixteen non-manufacturing industries reported growth in February, while two reported contraction.
Growth in the Business Activity Index increased 3.3 points to 63.6, the highest reading since February 2011. Thirteen industries reported increased business activity and one reported decreased activity. Respondents noted an optimistic business climate and seasonal uptick over a typically slow January.
Non-manufacturing employment grew for the 36th consecutive month. The index increased 0.5 percentage point to 55.2. Eleven industries reported increased employment, while four reported decreased employment.
The New Orders Index rose 2.6 points to 61.2. Some respondents commented that they had new clients onboard and are spending new budgets.
Supplier deliveries slowed for the 14th consecutive month, as the index registered 50.5 points (readings above 50 for this index indicate slower deliveries). Five industries reported slower deliveries, while five reported faster deliveries.
Read the ISM release.