While ISM Manufacturing gets much of the attention, that sector represents just over 10% of the U.S. economy.  Meanwhile services dominates, so today's ISM figure is much more relevant.  Much like last month it was a nice headline print, with cost pressures increasing and some positive trends in employment - which have yet to really filter through to the government's monthly data.

  • Headline figure at 59.7 in February versus 59.4 in January.
  • Employment Index increased 1.1 percentage points to 55.6 percent, indicating growth in employment for the sixth consecutive month and at a faster rate. 
  • The Prices Index increased 1.2 percentage points to 73.3 percent, indicating that prices increased at a faster rate in February.

ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE

COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS*

FEBRUARY 2011

 Non-ManufacturingManufacturing
IndexSeries

Index

Feb.

Series

Index

Jan.

Percent

Point

Change

DirectionRate

of

Change

Trend**

(Months)

Series

Index

Feb.

Series

Index

Jan.

Percent

Point

Change

NMI/PMI59.759.4+0.3GrowingFaster1561.460.8+0.6
Business Activity/Production66.964.6+2.3GrowingFaster1966.363.5+2.8
New Orders64.464.9-0.5GrowingSlower1968.067.8+0.2
Employment55.654.5+1.1GrowingFaster664.561.7+2.8
Supplier Deliveries52.053.5-1.5SlowingSlower1159.458.6+0.8
Inventories55.549.0+6.5GrowingFrom Contracting148.852.4-3.6
Prices73.372.1+1.2IncreasingFaster1982.081.5+0.5
Backlog of Orders52.050.5+1.5GrowingFaster259.058.0+1.0
New Export Orders56.553.5+3.0GrowingFaster662.562.0+0.5
Imports53.553.50.0GrowingUnchanged755.055.00.0
Inventory Sentiment57.560.0-2.5Too HighSlower165N/AN/AN/A
Customers' InventoriesN/AN/AN/AN/AN/AN/A40.045.5-5.5