(CercleFinance.com) – Growth in activity in the American services sector was below expectations in February, according to the latest survey by the Institute for Supply Management (ISM).
The ISM services index fell to 56.5 last month from 59.9 in January, when economists on average had expected a rise to 61.
The new orders component notably fell to 56.1 from 61.7 in January, but the most worrying decline is to be attributed to the employment sub-index, which fell from 52.3 to 48. .5, to now settle below the 50-point threshold, ie in the contraction zone.
In its survey, the ISM notes that beyond labor shortages, companies surveyed say they are struggling to meet demand due to supply and logistical challenges, from items to origin of this slowdown in growth in the sector.
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