A report released by the Institute for Supply Management on Tuesday showed U.S. service sector growth slowed by slightly more than expected in the month of February.
The ISM said its services PMI fell to 52.6 in February after climbing to 53.4 in January. While a reading above 50 still indicates growth, economists had expected the index to show a more modest decrease to 53.0.
The bigger than expected dip by the headline index partly reflected a downturn by employment, with the employment index dropping to 48.0 in February from 50.5 in January.