US ISM Services PMI dropped from 59.9 to 56.5 in February, well below expectation of 60.5. Looking at some details, business activity/production dropped -4.8 to 55.1. New orders dropped -5.6 to 48.5. Employment dropped -3.8 to 48.5. Prices rose 0.8 to 83.1.
ISM said: The past relationship between the Services PMI and the overall economy indicates that the Services PMI for February (56.5 percent) corresponds to a 2.3-percent increase in real gross domestic product (GDP) on an annualized basis.”
