In February, ISM Services PMI registered 55.1% (marginally lower than prior reading of 55.2%), showing a growth in February for the second consecutive month after a reading of 49.2 % in December, the first contraction since May 2020 (45.4 %). For a quick understanding of how the components have moved, look below. The market is most concerned about inflation and while the prices paid index continues to be elevated , it is gradually moving towards equilibrium and the supplier delivery time is reducing which is supportive of lower prices. Business Activity Index at 56.3% (prior 60.40%) New Orders Index at 62.6% (prior 60.40%) Employment Index at 54% (prior 50.00%) Employment activity in the services sector grew in February after an unchanged reading in January Supplier Deliveries Index at 47.6% (prior 50.00%) - The number indicated the fastest delivery performance since June 2009, when the index registered 46 %. Note that Supplier Deliveries is the only component that is inversed; a readi...
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