ISM Service Sector Index Reports Contraction in February

Tempe, AZ, April 5, 2017—The Non-Manufacturing Index registered 55.2%, which is 2.4 percentage points lower than the February reading of 57.6%, according to the Non-Manufacturing ISM Report On Business.

This represents continued growth in the non-manufacturing sector at a slower rate.

The Non-Manufacturing Business Activity Index decreased to 58.9%, 4.7 percentage points lower than the February reading of 63.6%, reflecting growth for the 92nd consecutive month, at a slower rate in March.

The New Orders Index registered 58.9%, 2.3 percentage points lower than the reading of 61.2% in February.

The Employment Index decreased 3.6 percentage points in March to 51.6% from the February reading of 55.2%.

The Prices Index decreased 4.2 percentage points from the February reading of 57.7% to 53.5%, indicating prices increased for the 12th consecutive month, at a slower rate in March. According to the NMI, 15 non-manufacturing industries reported growth in March.

The 15 non-manufacturing industries reporting growth in March—listed in order—are Management of Companies & Support Services; Utilities; Wholesale Trade; Mining; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Accommodation & Food Services; Retail Trade; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Construction; Finance & Insurance; Other Services; and Public Administration.

The three industries reporting contraction in March are: Information; Educational Services; and Professional, Scientific & Technical Services.