The survey highlighted a broad strengthening in the largest part of the economy prior to the US-Israeli attacks on Iran. Healthier demand helped boost services employment, which saw the firmest growth in a year.
Also Read: US to hike tariffs 10-15% this week, says Scott Bessent; predicts return to Trump rates in 5 monthsSeparate data out on Wednesday showed US companies added 63,000 jobs last month, the most since July. Fourteen service industries reported growth in February, led by mining, information and real estate. Three contracted.
“The US economy is off to a decent start, and its resilience should help it overcome turbulence from the Iran war, barring an extreme scenario for energy prices,” Sal Guatieri, senior economist at BMO Capital Markets, said in a note.The ISM measure of new orders climbed to a more than one-year high of 58.6. A third of service providers reported higher bookings, the largest share in three years.
Export demand also strengthened notably. Business activity, which parallels the group’s factory output index, registered the fastest growth since May 2024.
Also Read: Russia says US attacked Iran on false pretext, condemns call for Iranians to seize power
On Monday, ISM data showed a second month of expanding manufacturing activity. A measure of order backlogs at service providers jumped an unprecedented 11.9 points to an almost four-year high.
Unlike the ISM manufacturing survey, which showed that input prices soared at the fastest pace since 2022, inflationary pressures cooled at service providers. The index of prices paid for services and materials fell to an almost one-year low.
(Edited by : Jomy Jos Pullokaran)
