The U.S. services sector expanded at a slightly slower pace in February as the non-manufacturing business activity composite index was 51.6 in the month, compared to 54.0 in January, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
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 fell to 53.7 from 57.1.
The employment index decreased to 47.5 from 56.4.
The business activity/production index slid to 54.6 from 56.3, the new orders index was at 51.3, up from 50.9; backlog of orders gained to 52.0 from 49.0; new export orders declined to 47.5 from 49.0; inventories held at 50.5; inventory sentiment decreased to 62.0 from 63.0; the supplier deliveries index climbed to 53.0 from 52.5; and imports fell to 47.0 from 48.0.
Members' general comments on business in the month included:
"Steady - trending slightly lower." (Finance & Insurance)
"Economy still plugging along, but at a very slow rate of growth." (Professional, Scientific & Technical Services)
"The Affordable Care Act is creating significant financial uncertainty to healthcare organizations. With little warning, the negative impact on revenue has been unprecedented." (Health Care & Social Assistance)
"Passage of the federal budget and subsequent funding appropriations are allowing government agencies to start spending funds on planned new projects." (Public Administration)
"Oil prices continue creeping upwards along with chemicals." (Utilities)
"Cold winter weather has had a major affect on us when compared to year-over-year." (Wholesale Trade)
"Winter weather is slowing down our projects; it should only be until April." (Construction)
