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Service-sector activity shrinks at faster pace

April 03, 2009

Economic activity in the U.S. service sector shrunk at a faster pace in March than in February, the Institute for Supply Management reported today. Its nonmanufacturing index fell to a reading of 40.8 in March from 41.6 in February. Only index readings above 50 indicate expansion.

March's reading marked the sixth consecutive month of contraction in the service sector.

Employment in the service sector also contracted at a faster rate in March. The employment portion of the index fell to a reading of 32.3 in March from 37.3 in February.