Service sector still contracting
NEW YORK — The latest survey from the Institute for Supply Management trade group suggests that the service sector is still contracting.
The institute reported today that its non-manufacturing index registered 49.6 in March, a slightly better reading than February’s 49.3.
A reading below 50 indicates contraction, while a reading above 50 indicates growth.
It’s the third consecutive month of contraction, but the March reading is a bit stronger than the 49.0 expected by analysts surveyed by Thomson/IFR.
Purchasing managers surveyed by the institute say they are especially worried about rising commodity prices.