The Institute for Supply Management’s non-manufacturing business activity composite index was 41.6 in February, down from 42.9 in January, on a seasonally adjusted basis, the group said yesterday.
Economists polled by Thomson Reuters had expected a 41.0 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, closely watched for signs of inflation, rose to 48.1 from 42.5. The employment index increased to 37.3 from 34.4.
The business activity index fell to 40.2 from 44.2, the new orders index dropped to 40.7 from 41.6, backlog of orders fell to 36.5 from 37.5; new export orders grew to 40.0 from 39.0, inventories decreased to 39.0 from 41.5, inventory sentiment rose to 66.5 from 62.5, the supplier deliveries index decreased to 48.0 from 51.5, and imports dropped to 39.0 from 40.5.
