US ISM non-manufacturing index suggests economy remains in good health: Capital Economics

Quotes from Capital Economics:

- US ISM non-manufacturing index was basically unchanged in Feb, at 56.9 versus 56.7 in Jan, mainly as a boost to activity from lower energy prices offset the disruptions caused by the West Coast labour dispute. With that dispute now resolved and the full boost from lower energy costs yet to be felt, activity in the services sector will remain strong is not improve. 

- When taken together with the ISM manufacturing survey, which fell in Feb, the ISM non-manufacturing survey is consistent with the economy growing at an annualised rate of between 2.5% and 3.0% in the first quarter. Most of the sub-indices were broadly stable.  

- This survey goes some way to offsetting any concerns from the fall in the more widely-watched ISM manufacturing index released on Monday. The bottom line is that the US economy remains in good health.