Investing.com - Activity in the U.S. economy’s service sector picked up in February, according to a report released on Tuesday.
The Institute of Supply Management said its non-manufacturing purchasing managers’ index (PMI) rose to 59.7 from 56.7 in January.
“The non-manufacturing sector’s growth rate rebounded in February after cooling off in January,” ISM chair Anthony Nieves explained in the report. “Respondents are concerned about the uncertainty of tariffs, capacity constraints and employment resources; however, they remain mostly optimistic about overall business conditions and the economy.”
A similar survey of the manufacturing sector released on Friday showed that U.S. factory activity fell to a two-year low as demand softened.
A reading above 50 for the index indicates expansion in the sector and a reading below signals contraction.
Among the sub-indices, the non-manufacturing business activity index increased to 64.7 last month from 59.7 in January.
The new orders index, the most forward-looking element of the survey, ticked up to 65.2 from 57.7 the previous month.
The employment index fell to 55.2 from 57.8 previously, while the prices index fell to 54.4 from 59.4."