US services sector grows in February

US economic activity in the services sector grew in February, an indication of continued growth at a slightly faster rate, a report showed here Tuesday. The Institute for Supply Management (ISM) indicated that economic activity in the non-manufacturing sector grew in February for the 38th consecutive month. It indicated that the NMI registered 56 percent in February, 0.8 percentage point higher than the 55.2 percent registered in January, which indicates "continued growth at a slightly faster rate" in the non-manufacturing sector. The report noted that this month's reading also reflects the highest NMI since February 2012, when the index registered 56.1 percent. In addition, the Non-Manufacturing Business Activity Index registered 56.9 percent, which is 0.5 percentage point higher than the 56.4 percent reported in January, reflecting growth for the 43rd consecutive month. The New Orders Index increased by 3.8 percentage points to 58.2 percent and the Employment Index decreased 0.3 percentage point to 57.2 percent, indicating growth in employment for the seventh consecutive month. The Prices Index increased 3.7 percentage points to 61.7 percent, indicating prices increased at a faster rate in February when compared to January. According to the NMI, 13 non-manufacturing industries reported growth in February. The majority of respondents' comments reflect "a growing optimism about the trend of the economy and overall business conditions".