ISM Services Index Slips in March

The U.S. economy’s service sector declined in March but still showed expansion, the Institute for Supply Management said Tuesday.

ISM’s monthly services index fell to a reading of 57.3, from 59.7 in February, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast a reading of 59.5, Bloomberg reported. The index averaged 56.1 during the five-year expansion that ended in December 2007.

ISM’s services 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.