Economy: ISM Non-Manufacturing Index (NMI®) for February 2018

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for February 2018:

Predicted: 58.8%
Actual: 59.5%

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Previous month: 59.9%

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The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service categories include: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Public Administration; and Other Services (services such as Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

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From today' report:

"...Economic activity in the non-manufacturing sector grew in February for the 97th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®..."

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Here's a sampling of comments made by survey participants:

"Lumber-related costs continue to increase as supply is also starting to become a problem. The market volatility of construction materials and the short supply of construction labor have added difficulty to long-term planning."
(Construction)

"Slight increase in activity; beginning to see some higher cost for goods and services."
(Finance and Insurance)

"Overall, [a] very positive outlook. Employment is low, and prices are up."
(Health Care and Social Assistance)

"Price of oil is increasing, which will have a trickle-down effect on our business. As the major oil and gas companies increase their activity, our business will increase with a bit of a lag."
(Mining)

"Class-A driver shortage is causing an escalation in the cost of both inbound and outbound logistics, which is increasing our cost of goods."
(Accommodation and Food Services)

"Optimistic outlook due to GDP and tax breaks, tempered by stock market instability."
(Professional, Scientific and Technical Services)

"Business outlook is picking up momentum due to the state of the stock-market and recent tax breaks. More investment into corporation CapEx funds."
(Retail Trade)

"Domestic transportation is still a challenge with slower than normal transit times. Both intermodal and over-the-road carriers are struggling [with] the electronic data logs (ELDs) now required on all tractors."
(Wholesale Trade)