US ISM Services PMI fell from 53.4 to 52.6 in February, worse than expectation of 53.0. Looking at some details, business activity/production rose from 55.8 to 57.2. New orders rose from 55.0 to 56.1. Employment fell from 50.5 to 48.0, back in contraction. Prices fell from 64.0 to 58.6.
Anthony Nieves, Chair of ISM Services Business Survey Committee, said, “The slight decrease in the rate of growth in February is a result of faster supplier deliveries and the contraction in the Employment Index. The majority of respondents are mostly positive about business conditions. Respondents remain concerned about inflation, employment and ongoing geopolitical conflicts.”
“The past relationship between the Services PMI and the overall economy indicates that the Services PMI for February (52.6 percent) corresponds to a 1.2-percent increase in real gross domestic product (GDP) on an annualized basis.”
Full ISM services release here.
