Growth in the nation’s services sector slowed in March for the first time this year, according to the results of an industry survey released on Monday.
A slowdown in production contributed to the decreased pace of growth, though March also saw a pick up in new orders. Prices and employment expanded in the month as well.
The Institute for Supply Management said its index of non-manufacturing activity came in at 56.5 for March. This was down from the level of 56.9 seen in the previous month.
Any reading above 50 indicates expansion in the section. While March’s reading remained above 50, the drop from February’s result suggested a slowdown in growth for the county’s services sectors.
The 56.5 reading for March represented the slowest growth for the non-manufacturing segment this year, tying the result seen in December.
The strongest growth during March was seen in support services and real estate, with rental and leasing, food services and transportation also showing strong growth compared to the other sectors tracked by the index.
Meanwhile, a handful of industries showed contraction during the month. These included mining, educational services and utilities.
The decline in the overall index came with slower growth in production. The business activity/production index slipped to 57.5 for March, down from 59.4 in the previous month.
Despite the downward tick in the overall index, there were some positive signs in the ISM report. New orders and employment both expanded at a faster pace in March.
The new orders index climbed to 57.8 in the month, compared to a reading of 56.7 in the previous month. The employment index ticked up to 56.6 from 56.4.
Company stockpiles contracted during March, with the inventories index slipping below the key 50 mark, dropping to 49.5 in March compared to 54.5 in February.
Prices began to increase again during the month after a contraction in February. The prices index rose to 52.4 from 49.7 in the previous month.
The material has been provided by InstaForex Company – www.instaforex.com