ISM: Non-Manufacturing Sector Grows in February

MAR 6, 2019 - 6:55 am

Economic activity in the non-manufacturing sector grew in February for the 109th consecutive month, according to the latest Non-Manufacturing ISM Report on Business.

“The NMI registered 59.7%, which is 3 percentage points higher than the January reading of 56.7%. This represents continued growth in the non-manufacturing sector, at a faster rate. The Non-Manufacturing Business Activity Index increased to 64.7%, 5 percentage points higher than the January reading of 59.7%, reflecting growth for the 115th consecutive month, at a faster rate in February,” said Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. “The New Orders Index registered 65.2%, 7.5 percentage points higher than the reading of 57.7% in January. The Employment Index decreased 2.6 percentage points in February to 55.2% from the January reading of 57.8%. The Prices Index decreased 5 percentage points from the January reading of 59.4% to 54.4%, indicating that prices increased in February for the 21st consecutive month.

“According to the NMI, all 18 non-manufacturing industries reported growth. The non-manufacturing sector’s growth rate rebounded in February after cooling off in January. Respondents are concerned about the uncertainty of tariffs, capacity constraints and employment resources; however, they remain mostly optimistic about overall business conditions and the economy.”

The 18 non-manufacturing industries reporting growth in February — listed in order — are: