Non-Manufacturing Rose to 57.6% in February

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Non-Manufacturing Rose to 57.6% in February

Tempe, AZ, March 3, 2017—The Non-Manufacturing Index registered 57.6% in February, which is 1.1 percentage points higher than the January reading of 56.5%, according to latest Non-Manufacturing ISM Report On Business.

This is the highest reading since October 2015 and represents continued growth in the non-manufacturing sector at a slightly faster rate.

The Non-Manufacturing Business Activity Index increased to 63.6%, 3.3 percentage points higher than the January reading of 60.3%, which is the highest reading since February 2011, when the index registered 63.8%, reflecting growth for the 91st consecutive month, at a faster rate in February.

The New Orders Index registered 61.2%, 2.6 percentage points higher than the reading of 58.6% in January. This is the highest reading since August 2015, when the index registered 62.7%.

The Employment Index increased 0.5 percentage point in February to 55.2% from the January reading of 54.7%.

The Prices Index decreased 1.3 percentage points from the January reading of 59% to 57.7%, indicating prices increased for the 11th consecutive month, at a slower rate in February.

According to the NMI, 16 non-manufacturing industries reported growth in February. The non-manufacturing sector reflected strong growth in February after cooling off in January. Respondents’ comments continue to be mixed, with some uncertainty; however, the majority indicate a positive outlook on business conditions and the overall economy.

The 16 non-manufacturing industries reporting growth in February — listed in order — 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.