US: Services firms continue solid expansion in February - Wells Fargo

The ISM non-manufacturing index held near its cycle high posted in January, slipping 0.4 points in February to a reading of 59.5, mentioned analysts at Wells Fargo. They explained that services firms are reporting strong demand with more activity in the pipeline. 

Key Quotes: 

“February’s ISM non-manufacturing composite index came in at a strong 59.5, which is in line with recent highs. The survey’s gauges of business activity, new orders and backlogs all rose during the month, suggesting continued strength going forward.”

“Among components, only the employment and import indices declined noticeably, although the decline in employment was largely a return to usual expansion after surging in January.

“The firming price trend we noted in January was still largely at play in February. The measure of prices paid by services firms rose above 60 in September 2017 for the first time in three years and has remained above 60 in 5 of the last 6 months. Comments from respondents are increasingly referring to more price pressure.”