New orders in US non-manufacturing jump in February, ISM says

A key gauge of activity in America's services sector snapped higher last month, led by rapid climb in new orders and backlogs.

The Institute for Supply Management's non-manbufacturing Purchasing Managers' Index rose from January's reading of 55.5 to 57.3, besting forecasts for no change.

The key sub-index for new orders jumped from 56.2 to 63.1 and that linked to firms' order books from 45.5 to 53.2.

A gauge of new export orders also improved, from 50.1 to 55.6.

Inventories also headed higher, with a sub-index tracking those jumping from 46.5 to 53.9, even as another for imports slipped from 55.1 to 52.6.

The prices paid sub-index meanwhile fell back from 55.5 to 50.8.

Of note, healthcare companies reported "major back-orders in masks, gloves, and personal protection equipment.

"A lot of the masks are manufactured in China, so not only are we facing a shortage because of the virus, there is a drastic shortage because the masks are manufactured where the virus originated."

In construction meanwhile, the coronavirus was blamed for "increased" lead times for critical items.

Nonetheless, overall, supplier deliveries only slowed a bit more quickly, with the corresponding sub-index rising from 51.7 to 52.4.