The U.S. services sector expanded at a slightly faster pace in March as the non-manufacturing business activity composite index was 53.1 in the month, compared to 51.6 in February, on a seasonally adjusted basis, the Institute for Supply Management reported Thursday.
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 rose to 58.3 from 53.7.
The employment index increased to 53.6 from 47.5.
The business activity/production index slid to 53.4 from 54.6, the new orders index was at 53.4, up from 51.3; backlog of orders dipped to 51.5 from 52.0; new export orders increased to 49.5 from 47.5; inventories fell to 48.0 from 50.5; inventory sentiment decreased to 60.5 from 62.0; the supplier deliveries index slipped to 52.0 from 53.0; and imports rose to 50.5 from 47.0.
Members' general comments on business in the month included:
"Outlook remains positive." (Information)
"Cold weather played more havoc on revenue, causing steep declines for nearly a week, and then picked up well beyond expectations. Overall, per capita spending increases, but frequency of visits are down; net neutral to slightly positive." (Arts, Entertainment & Recreation)
"Demand is rising; while at the same time there is pressure to reduce staffing expenses." (Finance & Insurance)
"Healthcare reform continues to adversely impact hospital projected/actual revenue." (Health Care & Social Assistance)
"Weather in Northeast - lost business days/business travel and site visits impacted. Energy costs rapidly increasing." (Professional, Scientific & Technical Services)
"Business was a little slower than expected due to harsh weather conditions across much of the country, but we expect a rebound as spring approaches." (Retail Trade)
"Economic environment continues to moderate slowly." (Management of Companies & Support Services)
