Economics

U.S. Service Industries Expand at Slowest Pace in Nine Months

  • ISM gauge drops as orders, business activity growth cool
  • Measure of prices paid jumps to highest level since 2008
U.S. Service Industries See Slowest Growth in Nine Months
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Growth at U.S. service providers slowed to a nine-month low in February as companies grappled with logistical challenges and rising prices at the same time a stretch of severe winter weather gripped much of the nation.

The Institute for Supply Management’s services index fell to 55.3 during the month from an almost two-year high of 58.7 in January, according to data released Wednesday. Readings above 50 signal growth and the February figure was weaker than the most pessimistic forecast in a Bloomberg survey of economists.