Economic activity in the U.S. service sector increased in February at a faster rate than in January, according to the Institute for Supply Management's nonmanufacturing index released today.

The institute's nonmanufacturing index rose to a reading of 53.0 in February from 50.5 in January. Readings of more than 50 indicate expansion.

The employment portion of the index, however, continued to show contraction with a reading of 48.6 in February. The rate of contraction was slower than in January, when the level was 44.6.