Services sector shrinks, but in line with forecasts

Baby steps…baby steps. At least it wasn’t a bad surprise.

The Institute for Supply Management said its nonmanufacturing index came in at 41.6 in February versus 42.9 in January.

The level of 50 separates expansion from contraction in the index, which dates back to July 1997.

Economists had expected a reading of 41.0, according to the median of 69 forecasts in a Reuters poll ranging from 37.0 to 44.0.

The service sector represents about 80 percent of U.S. economic activity, including businesses such as banks, airlines, hotels and restaurants.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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