ISM Services Surprises To The Upside

by: Bespoke Investment Group

Today's release of the ISM Services index came in better than expected (56.0 vs. 55.0), rising to its highest level since last February. The table below lists the ISM Services index and each of its sub-components, and compares the current reading to levels from last month and last year. As shown, all 10 subcomponents are currently above the 50 threshold for growth, and seven out of 10 are higher this month compared to last month. Compared to last year, although the headline index is modestly lower now (56.0 vs. 56.1), seven out of 10 components are up.

At the bottom of the table, we have also listed the current reading of the combined ISM, weighted by each index's weight in the economy. At a level of 55.8 in February, the index is not only higher than last month and last year, but it is also at its highest reading since April 2011.