The U.S. services sector was up in February as the non-manufacturing business activity composite index was 57.6 in the month, compared to 56.5 in January, on a seasonally adjusted basis, the Institute for Supply Management reported Friday.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
Economists polled by Thomson Reuters had expected a 56.5 level.
The prices paid index slipped to 57.7 from 59.0.
The employment index rose to 55.2 from 54.7.
The business activity/production index gained to 63.6 from 60.3, the new orders index was at 61.2, up from 58.6; backlog of orders grew to 54.0 from 50.0; new export orders jumped to 57.0 from 48.0; inventories rose to 52.0 from 48.0; inventory sentiment gained to 64.5 from 62.0; the supplier deliveries index declined to 50.5 from 52.5; and imports decreased to 51.0 from 54.0.
Members' general comments on business in the month included:
- "Our business remains strong." (Health Care & Social Assistance)
- "Business has been consistent for the start of 2017." (Management of Companies & Support Services)
- "U.S. construction labor is tight." (Construction)
- "Lending has picked up quite nicely." (Finance & Insurance)
- "Strong 1st quarter for our industry shows promise for 2017." (Mining)
- "Heavy rains and continuing storms have affected the quality and availability of greens and lettuces in California. Prices have also increased. Product yield has also declined, specifically for heartier greens." (Accommodation & Food Services)
- "Oil prices have stabilized, but not at a level that drives significant increases in capital spending at oil and gas companies. Business activity has increased just slightly." (Professional, Scientific & Technical Services)
- "Slow after the holiday. Positive year ahead." (Retail Trade)
- "The dramatic improvement in business, which began in December continued into January. Early February is showing similar results." (Wholesale Trade)
