WASHINGTON (AP) – U.S. services companies saw their growth rate taper off in March, as hiring and business activity remained positive but dipped relative to February.
The Institute for Supply Management, a trade group for purchasing managers, said Wednesday that its services index fell to 55.2 last month from 57.6 in February. Any reading above 50 signals growth.
The report points to the United States continuing its nearly 8-year recovery from the Great Recession, a sign that many consumers and businesses are on a solid footing. Services – which can range from home buying to doctor’s visits to hair salons – account for the vast majority of the U.S. economic activity.
But some firms also reported a degree of uncertainty regarding the Trump administration in the survey used to compile the report.
One finance company said there is a “large amount of future uncertainty” regarding efforts to replace former President Barack Obama’s health insurance law. Another health care firm highlighted uncertainty as well, while a company in the accommodation and food services sector said there are possible challenges because President Donald Trump’s exact policies on trade and immigration are “unknown.”