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AMERICAN SERVICE-SECTOR HIRING GOES NEGATIVE

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ISM non-manufacturing sub-componentsThe results of the Institute for Supply Management's monthly survey of American services-sector firms are out.

The report's headline index fell to 51.6 from January's 54.0 reading, missing economists' consensus estimate of 53.5.

The closely-watched employment sub-index fell to 47.5 from January's 56.4 reading, indicative of a contraction in services-sector hiring over the past month.

A full breakdown of the report's various sub-components is displayed in table 1.

Below are selected comments from respondents to the ISM survey:

  • "Steady — trending slightly lower." (Finance & Insurance)
  • "Economy still plugging along, but at a very slow rate of growth." (Professional, Scientific & Technical Services)
  • "The Affordable Care Act is creating significant financial uncertainty to healthcare organizations. With little warning, the negative impact on revenue has been unprecedented." (Health Care & Social Assistance)
  • "Passage of the federal budget and subsequent funding appropriations are allowing government agencies to start spending funds on planned new projects." (Public Administration)
  • "Oil prices continue creeping upwards along with chemicals." (Utilities)
  • "Cold winter weather has had a major affect on us when compared to year-over-year." (Wholesale Trade)
  • "Winter weather is slowing down our projects; it should only be until April." (Construction)

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