Economic activity in the US nonmanufacturing sector increased in March at a slightly faster pace than February. The Institute for Supply Management’s nonmanufacturing composite index rose to a reading of 54.5 from February’s reading of 53.4.

A reading above 50 indicates expansion in the sector.

The employment portion of the index grew in March after a month of contraction. The index rose 0.6 percentage point to 50.3% from the February reading of 47.7%, which was the its first contraction after 23 consecutive months of growth and the first time the employment index has contracted since February 2014.

Nine industries reported increased employment, and six industries reported decreased employment.