Services PMI^® at 56.1%

Economic activity in the services sector continued to expand in February, say the nation’s purchasing and supply executives in the latest ISM^® Services PMI^® Report. 

The Services PMI^® registered 56.1 percent, its 20th month in a row in expansion territory. In February, the Services PMI^® registered a reading of 56.1 percent. The Business Activity Index accelerated its expansion in February, registering 59.9 percent, 2.5 percentage points higher than its reading of 57.4 percent recorded in January. The New Orders Index also accelerated its expansion in February, with a reading of 58.6 percent, 5.5 percentage points above January’s figure of 53.1 percent. The Employment Index expanded for the third month in a row with a reading of 51.8 percent, a 1.5-percentage point increase from the 50.3 percent recorded in January. The Supplier Deliveries Index registered 53.9 percent, 0.3 percentage point lower than the 54.2 percent recorded in January. This is the 15th consecutive month that the index has been in expansion territory, indicating slower supplier delivery performance. 

The 14 services industries reporting growth in February — listed in order — are: Mining; Information; Real Estate, Rental & Leasing; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Wholesale Trade; Finance & Insurance; Utilities; Professional, Scientific & Technical Services; Construction; Management of Companies & Support Services; Public Administration; Health Care & Social Assistance; and Educational Services.

In February, the Services PMI^® registered 56.1 percent, the index’s highest reading since it registered 56.5 percent in July 2022. A reading above 50 percent indicates the services sector economy is generally expanding; below 50 percent indicates it is generally contracting. The past relationship between the Services PMI^® and the overall economy indicates that the Services PMI^® for February (56.1 percent) corresponds to a 2.5-percentage point increase in real gross domestic product (GDP) on an annualized basis.

Commodities Reported

Commodities Up in Price: Cement Products; Chips; Computers; Copper (3); Gasoline* and Fuel; Labor (7); Lumber (2); Memory Products (2); Software; Software — Licensing; Software Maintenance; and Wire & Cable.

Commodities Down in Price: Diesel Fuel (3); and Gasoline* (12). 

Commodities in Short Supply: Electronic Components; High Voltage Equipment; Labor — Construction; and Memory Components (2).

Note: To view the full report, visit the ISM^® PMI^® Reports website at ismrob.org. The number of consecutive months the commodity has been listed is indicated after each item.