Non-manufacturing index fell in month

U.S. business activity in the non-manufacturing sector contracted in February, falling in 14 of 15 industries, a research group said.

The Institute for Supply Management said Wednesday the leading index for non-manufacturing, called the Purchasing Managers Index, dropped 1.3 percentage points to 41.5. Below 50 in the index indicates business activity contracting.

In non-manufacturing, only arts, entertainment and recreation showed growth in the month. Wholesale trade, company management, mining, educational services, construction, utilities, and transportation and warehousing all posted contractions during the month.

The leading index fell for the fifth consecutive month and at a slightly faster rate, than January’s decline, said Anthony Nieves, who chairs the non-manufacturing survey committee for ISM.

In February, the index for new orders fell slightly, while the price index rose. The employment index also rose, indicating the pace of job losses slowed slightly. The employment index, indicating contraction for 10 consecutive months, gained 2.9 percentage points to 37.3.

New exports orders remain in contraction with the index registering 40. Imports are also below break even, the index reading 39 for the month.