US service sector growth surprisingly cools: ISM

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Services growth surprisingly weak: ISM Reuters, 2 hours, 8 minutes ago
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US service sector growth cools: ISM

2 hours, 24 minutes ago

Growth in the vast services sector of the US economy cooled in February, a survey by the Institute of Supply Management showed Monday.

The ISM nonmanufacturing index fell to 54.3 percent last month from 59 percent in January.

The figure was considerably weaker than the 57.5 percent expected by Wall Street but ahead of the 50 percent which signifies expansion.

The ISM report suggests modest growth in services, which make up the bulk of activity in the world's largest economy.

"The overall indication in February is continued economic growth in the non-manufacturing sector, but at a slower pace than in January," said ISM survey chief Anthony Nieves.

Nieves noted that the survey marked the 47th consecutive month of expansion in February.

The sub-indexes in the report were generally mixed, but most were above 50 percent.

The prices index, a gauge of inflation pressures, fell 1.4 points to 53.8 percent.

The index for new orders fell to 54.8 percent from 55.4 percent a month earlier, while the employment index edged up 52.2 percent from 51.7 percent.

The latest report was roughly in line with the ISM index of national industrial activity, which rose to 52.3 percent in February and showed modest growth from 49.3 percent in January.