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Report: U.S. Service Sector Still Strong

According to a survey by the Institute for Supply Management, the services sector of the national economy has shown strong growth in an unexpected rise during the month of March. The ISM non-manufacturing index rose to 60.5 from 60.1 in February, topping expectations for a figure of 59. Any figure above 50 indicates expansion.

The report suggested a robust pace of growth in services, which makes up the lion`s share of U.S. economic activity. Among the component indexes, new orders rose to 59.5 from 56.2, while the employment index slipped to 54.6 from 58.2. Inflation pressures have eased, with the price index falling to 60.5 from 64.8 in the previous month.

A chief bond market strategist at Miller Tabak and Co. said that "The market was looking for confirmation that there might be a broad slowing of the economy under way but the data did not reinforce that view. "In fact, it suggested the slowdown seen in manufacturing was isolated to that sector alone." The services sector makes up 80 percent of U.S. economic activity.