Economic activity in the US nonmanufacturing sector decelerated slightly in March, according to the Institute for Supply Management’s nonmanufacturing index released today.

ISM’s nonmanufacturing index edged down in March to a reading for 58.8 from February’s reading of 59.5. Readings above 50 generally indicate improving conditions.

However, the employment portion of the index increased in March to 56.6 from the February reading of 55.0. Twelve industries reported increased employment; only two industries — educational services and “other services” — reported a reduction in employment. Comments from respondents include: “Staffing to process increased volume” and “increasing manpower slowly to cover expected new orders.”