Following last week's weaker than expected ISM Manufacturing report, this morning's ISM Non-Manufacturing report came in stronger than expected. Net net, for the month of February the US manufacturing sector showed weaker than expected growth, while the services sector was a bit stronger than expected. Call it a draw.
The chart below shows a composite ISM index calculated by Bloomberg using the ISM Manufacturing and ISM Non Manufacturing indices and weighting them according to each sector's weight in the US economy. As shown, the overall reading increased modestly this month and currently sits at 56.7. For the combined components, this is the third straight month of gains and the highest reading since March 2011. The high for this cycle was 59.9 last February.
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