Significant deterioration in new orders
The mood among US service providers surprisingly clouded over in February. The purchasing managers index of the Institute for Supply Management (ISM) fell compared to the previous month by 3.4 points to 55.3 points, as the Institute for Market Research announced. Analysts had expected an unchanged value of 58.7 points.
Due to many corona restrictions, service providers are suffering more from the virus crisis than industry. The sub-indicator for new orders has deteriorated significantly. But the values for general economic activity and employment also fell. On the other hand, the indicator for prices paid rose.
Overall, however, the indicator continues to point to growth, as it is above the 50 point mark. This 50-point threshold separates economic growth from contraction.
