Economic activity in the U.S. service sector declined at a faster pace in February than in January, the Institute for Supply Management reported today. Its nonmanufacturing index fell to a reading of 41.6 in February from 42.9 in January. Only index readings above 50 indicate expansion.

The Wall Street Journal reported the index was expected to fall to 41.

Employment in the service sector also contracted, but at a slower rate. The employment portion of the index rose to a reading of 37.3 in February from 34.4 in January.