Economic activity in the US nonmanufacturing sector accelerated in February, according to the Institute for Supply Management’s nonmanufacturing index, released today.

ISM’s nonmanufacturing index rose to a reading of 59.7 in February, up from a reading of 56.7 in January.

Readings above 50 generally indicate improving conditions. According to the index, all 18 non-manufacturing industries reported growth.

“The non-manufacturing sector's growth rate rebounded in February after cooling off in January,” said Anthony Nieves, chair of the Institute for Supply Management non-manufacturing business survey committee. “Respondents are concerned about the uncertainty of tariffs, capacity constraints and employment resources; however, they remain mostly optimistic about overall business conditions and the economy."

However, the employment portion of the index decreased in February to a reading of 55.2 from January’s reading of 57.8. Eleven industries reported increased employment, and four industries — accommodation and food services; information; retail trade; and public administration — reported decreased employment.