ISM: Non-Manufacturing Sector Growth Robust in February

The ISM Non-Manufacturing Index registered 57.3 points in February, 1.8 percentage points above January’s figure. This was the 12st consecutive month of expansion as a reading above 50 indicates growth. Sixteen of the eighteen non-manufacturing industries reported growth. Respondents are concerned about the coronavirus and its supply chain impact. They also continue to have difficulty with labor resources. They do remain positive about business conditions and the overall economy.”

Growth in the Business Activity Index registered 57.8 percent in February, a decrease of 3.1 percentage points from the January reading of 60.9 percent. This represents growth in business activity for the 127th consecutive month. Thirteen industries reported increased business activity. Comments from respondents include: “Strong consumer demand” and “New accounts and demand for existing clients.”

Non-manufacturing employment grew for the 72nd consecutive month. registered 55.6 percent, an increase of 2.5 percentage points from the January reading of 53.1 percent. Eleven industries reported increased employment, and five industries reported decreased employment.

The New Orders Index registered 63.1 percent, an increase of 6.9 percentage points from the January reading of 56.2 percent. This is the highest reading since June 2018, when the index also registered 63.1 percent. New orders grew for the 127th consecutive month, at a faster rate compared with January.

Supplier deliveries slowed yet again, as the index registered 52.4 points (readings above 50 for this index indicate slower deliveries). Eleven industries reported slower deliveries, while two industries reported faster deliveries.

Read the ISM release


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