Service sector growth in the U.S. unexpectedly accelerated in the month of February, according to a report released by the Institute for Supply Management on Friday.
The ISM said its non-manufacturing index climbed to 57.6 in February from 56.5 in January, with a reading above 50 indicating growth in the service sector. Economists had expected the index to come in unchanged compared to the previous month.
With the unexpected monthly increase, the ISM said the non-manufacturing index reached its highest level since October of 2015.
"The non-manufacturing sector reflected strong growth in February after cooling off in January," said Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee.
He added, "Respondents' comments continue to be mixed, with some uncertainty; however, the majority indicate a positive outlook on business conditions and the overall economy."
The report said the business activity index jumped to 63.6 in February from 60.3 in January, reaching its highest reaching since February of 2011.
The new orders index also reached its highest level since August of 2015, rising to 61.2 in February from 58.6 in January.
The ISM also said the employment index edged up to 55.2 in February from 54.7 in January, suggesting a slightly faster rate of job growth in the service sector.
On the other hand, the prices index indicated a slower rate of price growth during the month, dipping to 57.7 in February from 59.0 in January.
The ISM released a separate report on Wednesday showing that growth in U.S. manufacturing activity accelerated by much more than anticipated in the month of February
The purchasing managers index climbed to 57.7 in February from 56.0 in January, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to inch up to 56.4.
With the bigger than expected increase, the manufacturing index rose to its highest level since reaching 57.9 in August of 2014.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.