U.S. Service Sector Expands at a Slower Rate in March: ISM Report
Business activity in the service
sector increased at a slower rate in March 2007, according
to the latest ISM report by the nation's purchasing and supply executives.
The index of business activity in the non-manufacturing sector registered
52.4 in March, down from 54.3 in February. Wall Street was expecting a
reading of 54.7. The index is at its lowest level since April 2003.
According to the Institute for Supply Management Non-Manufacturing Business Survey report, non-manufacturing business activity increased for the 48th consecutive month in March, with Business Activity, New Orders and Employment increased at a slower rate in March than in February.
The Prices Index increased 9.5 percentage points this month to 63.3 percent. Ten non-manufacturing industries reported increased activity in March.
Members' comments in March indicate a concern with fuel costs, the economy and the impact on business conditions. The overall indication in March is continued economic growth in the non-manufacturing sector, but at a slower pace than in February.
