U.S. ISM services index expands in February but employment down

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The Institute for Supply Management (ISM) said its index of non-manufacturing activity fell to 53.4 from 53.5 the month before. The reading was just above expectations of 53.2 from a Reuters poll of 81 economists.

A reading above 50 indicates expansion in the service sector and a reading below 50 indicates contraction.

The business activity index rose to 57.8 from 53.9 the month before. That was just above expectations of 54.0.

The employment index fell to 49.7 from 52.1 a month earlier, marking the first fall in service-sector employment since February 2014. New orders dropped to 55.5 from 56.5. The prices paid index fell to 45.5 from 46.4.

The U.S.

"The reading was just above expectations of 53.2 from a Reuters poll of 81 economists.A reading above 50 indicates expansion in the service sector and a reading below 50 indicates contraction.The business activity index rose to 57.8 from 53.9 the month before"economy's manufacturing sector contracted in February but at a slower pace than the previous month, according to an earlier ISM report.

OPTIONAL TABLE

RIC Month Actual Reuters Prior

Poll

ISM Non-Manuf. PMI USNPMI=ECI February 53.4 53.2 53.5

ISM Non-Manuf. Prices Paid USPPMI=ECI February 45.5 N/A 46.4

ISM Non-Manuf. New Orders USDPMI=ECI February 55.5 N/A 56.5

ISM Non-Manuf. Bus.

Activity USOPMI=ECI February 57.8 54.0 53.9

ISM Non-Manuf. Employment USEPMI=ECI February 49.7 N/A 52.1