Economic activity in the US services sector expanded in March but at a slower pace than in February, according to the Institute of Supply Management’s Services PMI report. The Services PMI fell to a reading of 51.2% in March from 55.1% in February.

Readings above 50% indicate the services sector, generally speaking, is expanding, according to the ISM.

“The composite index indicated growth in March for the third consecutive month after a reading of 49.2% in December, the first contraction since May 2020,” said Anthony Nieves, chair of the ISM’s Services Business Survey Committee.

The ISM’s employment index portion of the Services PMI also slowed to a reading of 51.3% in March from 54.0% in February.

Comments from respondents to the report’s survey said “it continues to be difficult to maintain current positions and fill open positions” and “hiring full-time employees to support business activities.”

The ISM Services PMI is based on data compiled from purchasing and supply executives across the US.