ISM SERVICES UNEXPECTEDLY RISES TO 56.0

ISM's February non-manufacturing survey is out.

The headline index rose to 56.0 from 55.2 last month.

Economists predicted that the index would moderate slightly to 55.0.

The gains were led by the inventories sub-index, which rose to 54.0 from 47.0, and the backlog of orders sub-index, which rose to 54.5 from 49.0.

The new export orders sub-index also posted strong gains, rising to 60.5 from 55.5, while the new orders sub-index advanced to 58.2 from 54.4 last month.

Below is a breakdown of the sub-indices:

Below is what respondents to the survey are saying:

• "Our business is beginning to turn up slightly." (Health Care & Social Assistance)
• "Business seems to be improving; RFQ volume and orders also up." (Management of Companies & Support Services)
• "Continuing to see slight uptrend in activity, primarily related to 1st quarter initiatives started." (Finance & Insurance)
• "Construction market showing some positive signs." (Real Estate, Rental & Leasing)
• "The economy continues to slowly pick up, perhaps at an even faster pace than had been previously projected. New housing permits and business licenses are at a multiyear high, although still lower than pre-recession." (Public Administration)
• "February bouncing back to forecast levels, which was 11 percent over 2012." (Wholesale Trade)
• "Business is picking up; more projects to bid and things are improving." (Construction)

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