ISM Services PMI was relatively flat in February, yet quote robust, to 55.1 from 55.2 in January.  Still, it toppled consensus for 54.5.  This was music to many investors ears as the economy remains resilient and US businesses continue to grow.

Highlights:

• Employment rose to 54, the highest since December 2021
• Inventories climbed to 50.6 vs 49.2
• New order rose faster than anticipated to 62.6, the highest read since November 2021
• New export orders 61.7 vs 59,
• Price pressures cooled to 65.6 vs 67.8
• Production declined to 56.3 vs 60.4
• Supplier deliveries declined to 47.6, the most rapid increase in performance since June 2009

According to Anthony Nieves, the ISM Chair, “Business Survey Committee respondents indicated that they are mostly positive about business conditions. Suppliers continue to improve their capacity and logistics, as evidenced by faster deliveries. The employment picture has improved for some industries, despite the tight labor market. Several industries reported continued downsizing.”

The markets liked what they saw and took off and really haven’t look back.  Ten of the eleven S&P 500 sectors are in the green with Consumer Staples the lone decliner.

Advancers are toppling decliners as is the up volume, as yet again, buyers are showing sellers who is in charge.

Have a great weekend.