The Institute for Supply Management’s non-manufacturing business activity composite index was 55.4 in March, up from 53.0 in February, on a seasonally adjusted basis, the group said Monday.
Economists polled by Thomson Reuters had expected a 53.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, which is closely watched for signs of inflation, rose to 62.9 from 60.4.
The employment index increased to 49.8 from 48.6.
The business activity-production index rose to 60.0 from 54.8, the new orders index rose to 62.3 from 55.0; backlog of orders rose to 55.5 from 46.0; new export orders rose to 57.5 from 47.0; inventories rose to 46.5 from 45.0; inventory sentiment slipped to 52.5 from 60.0; the supplier deliveries index fell to 49.5 from 53.5; and imports rose to 51.0 from 48.5.
