U.S. February ISM services index falls to 41.6% WASHINGTON (MarketWatch) -- U.S. nonmanufacturing sectors contracted at a faster pace in February, according to a Wednesday report from the Institute for Supply Management, as the global slowdown continued to take its toll. The ISM non-manufacturing index fell to 41.6% in February from 42.9% in January as survey respondents' comments reflected concern about financing and general weak economic conditions. Economists polled by MarketWatch were looking for a February result of 41%. Readings below 50% indicate that more firms are contracting than expanding. Earlier this week, a separate report from ISM showed that U.S. manufacturers said their business worsened again in February for the 13th straight month, but the pace of the decline didn't accelerate as expected. The Institute for Supply Management's monthly purchasing managers' index rose to 35.8% in February from 35.6% in January. Economists surveyed by MarketWatch were expecting the ISM to fall to 34%. Nonmanufacturing details In February, the only industry reporting growth was "arts, entertainment and recreation." Meanwhile, the 14 industries reported contraction included the likes of "wholesale trade," "management of companies and support services" and mining. The ISM's business activity index fell to 40.2% from 44.2%. New orders decreased to 40.7% from 41.6%. Elsewhere, the employment index rose to 37.3% from 34.4%. The prices index rose to 48.1% from 42.5%. Also Wednesday, the ADP employment index reported that U.S. private-sector firms cut 697,000 jobs in February, a record loss in the ADP index, which dates back to 2001. See full story. On Friday, the government will report nonfarm payrolls for February, and analysts polled by MarketWatch are looking for a loss of 650,000.

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