US recovery is looking healthy

SERVICES activity in the US grew at a 12-month high in February according to figures from the Institute for Supply Management (ISM), published yesterday.

The index rose to 57.3 from 56.8, led by increasing new orders and business activity, though employment growth slowed slightly.

The expansion represents the 26th consecutive month of services growth, and economists believe it is consistent with private sector employment rising by 200,000 per month – though other indicators forecast a lower rise.