The U.S. services sector expanded at a slightly slower pace in March as the non-manufacturing business activity composite index was 56.5 in the month, compared to 56.9 in February, on a seasonally adjusted basis, the Institute for Supply Management reported Monday.
Economists polled by Thomson Reuters had expected a 56.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index climbed to 52.4 from 49.7.
The employment index increased to 56.6 from 56.4.
The business activity/production index slid to 57.5 from 59.4, the new orders index was at 57.8, up from 56.7; backlog of orders rose to 53.5 from 53.0; new export orders gained to 59.0 from 53.0; inventories decreased to 49.5 from 54.5; inventory sentiment slid to 61.0 from 62.0; the supplier deliveries index fell to 54.0 from 55.0; and imports grew to 55.5 from 51.0.
Members' general comments on business in the month included:
"Business remains strong this month." (Health Care & Social Assistance)
"Current business conditions are positive and the outlook for 2015 is on track this first quarter." (Finance & Insurance)
"See tremendous increase of business activities due to increase of capital investment, sales efforts and competition for human resources." (Professional, Scientific & Technical Services)
"Some increase in activity related to pre-construction season spending for budgeted capital projects." (Public Administration)
"Business slightly increasing year-over-year, but about the same as last month." (Retail Trade)
"Lower fuel prices improving overall profits, but do not appear to be lowering freight costs." (Transportation & Warehousing)
"Fuel costs continue to remain low; however, suppliers not willing to give back on fuel surcharges or to reduce fuel cost components of transportation." (Utilities)
"Overall business is continuing to expand for 2015." (Wholesale Trade)
