Investing.com - The rate of growth in the economy's service sector slowed in March, according to a report released on Wednesday.
The Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 58.8 in March, from 59.5 the previous month.
Economists had forecast a reading of 59.0.
A reading above 50 for the index indicates expansion in the sector, and a reading below 50 signals contraction.
The Non-Manufacturing Business Activity Index decreased to 60.6 last month, 2.2 points below February’s reading of 62.8.
Economists had forecast a decline to 62.3.
The New Orders Index registered 59.5 in March, 5.3 points lower than the reading of 64.8 in the previous month.
The Employment Index advanced 1.6 points to 56.6 last month from February’s reading of 55.0.
The Prices Index increased 0.5 points to 61.5 in March from the prior month’s reading of 61.0.
The ISM indicated that, despite the slowdown, it was the 98th consecutive month of expansion in economic activity in the non-manufacturing sector which it classified as “strong growth”.
“The cooling off of the New Orders Index possibly prevented an even stronger reading for the NMI composite index,” ISM chair Anthony Nieves explained in the report.
“The majority of respondents remain positive about business conditions," he added.