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To: Les H who wrote (6278)	3/5/2003 10:47:51 AM
From: Softechie	Read Replies (1) \| Respond to of 29600

DATA SNAP/ISM Non-Mfg: Services Expand Yet Again 05 Mar 10:25 ============================================================= ISM Non-Mfg Index Feb Jan !Surprise: No ! Business 53.9 54.5 !Trend: Service ! Orders 53.0 56.2 !Growth Unbroken For! Employment 49.0 50.3 !Over One Year ! ============================================================= By Michael S. Derby and John McAuley Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--U.S. service-sector activity grew at a modest pace in February, amid a renewed shrinkage in employment, the Institute for Supply Management said Wednesday. The group reported that its non-manufacturing index for February moved to 53.9, from 54.5 in January, a change that represents a small moderation in the overall rate of growth. The index was 54.2 in December. The non-manufacturing index is comprised mostly of services, which represent around two-thirds of total U.S. economic output. Index readings above 50 indicate expansion of activity and prices in the non-manufacturing sector, while readings under 50 denote contraction. Economists surveyed in advance of the report's release had expected a non-manufacturing ISM index reading of 53.5. A number of analysts had warned, however, that war uncertainty, which has shattered consumer confidence and trimmed retail spending, led to a strong likelihood of a weaker-than-expected ISM index. "In February, non-manufacturing business activity increased for the 13th consecutive month," said Ralph Kauffman, who directs the survey for the ISM. "The reported growth indicates a slightly slower rate of expansion than reported in January," he said. On Monday, the ISM said in a sister report that the rate of growth in the manufacturing sector slowed to negligible levels in February, in a performance suggesting recent signs of strength in that sector were a false dawn. Few economists, along with Federal Reserve policymakers, expect to see better levels of growth in the economy until consternation over the looming war lifts. The ISM said new orders for services grew at a slower pace in February relative to January, with a reading of 53.0 versus 56.2. The ISM said service-sector employment, which grew for the first time in nearly two years last month, contracted in February. That index registered 49.0 last month, after 50.3 in January and 46.9 in December. On Friday, the government will release national data on the jobs situation. Meanwhile, prices, much as they have in the manufacturing sector, continued to rise for service-sector companies. The prices index for February came in at 60.9, the highest since January 2001, versus 57.0 the prior month. (MORE) Dow Jones Newswires 03-05-03 1025ET