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U.S. Services Gauge Falls to One-Year Low as Orders Soften

  • ISM measure fell to 56.5 in February from 59.9 month earlier
  • Index of employment slumps to lowest since August 2020
Shipping containers outside a warehouse in Redlands, California.

Shipping containers outside a warehouse in Redlands, California.

Photographer: Roger Kisby/Bloomberg
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Growth in the U.S. services sector retreated in February to a one-year low as orders softened along with business activity, an indication supply constraints remain a hurdle for the economy.

The Institute for Supply Management’s gauge of services fell 3.4 points to 56.5, below even the most pessimistic estimate in a Bloomberg survey of economists, according to data released Thursday. Readings above 50 signal expansion.