U.S. February ISM Services - Weaker overall but detail mixed
February’s ISM services index of 52.6 is down from January’s 53.4 but still stronger than in each month of Q4. The breakdown is mixed with gains in new orders and business activity but slippage in employment, inventories and prices.
Business activity rose to a 5-month high of 57.2 from 55.8. New orders at 56.1 from 55.0 reached a 6-month high. These reasonably impressive gains we however outweighed by slippage in employment to 48.0 from 50.5, negative but still stronger than a very weak December, and deliveries, to 48.9 from 52.4, reaching a 4-month low.
The above four components make up the composite. Prices paid do not contribute, and saw quite a sharp slowing to 58.6 from 64.0. This is still above each month of Q4 so cannot be seen as weak, though the January strength now looks erratic. The ISM services series is showing some volatility, but is still consistent with moderate growth in both activity and prices persisting in Q1.
