ISM Services Index Continues Contraction

The U.S. economy’s service sector contracted in February, at a faster pace than the previous month, the Institute for Supply Management said Wednesday.

ISM’s monthly services index fell to a reading of 41.6, from 42.9 in January, the group said in its monthly report Wednesday.

Figures of more than 50 indicate expansion, while below that shows contraction. Economists had forecast a decline to reading of 41, Bloomberg reported.

The index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.