Growth in the dominant U.S. service sector fell to a four-year low last month, according to a new report that reinforced views of a weakening economy.
The Institute for Supply Management said its non-manufacturing index slid to 52.4 in March, down from February's 54.3.
February had already seen a sharp knockback in services with the index plummeting from 59 in January. Analysts had hoped for a rebound to 55 last month.
Any reading above 50 marks an expansion in the sector. Despite the weakness, the ISM's inflation gauged jumped.
The prices paid index jumped to 63.3 in March from 53.8 on the back of rising energy prices.
The report also coincided with unexpectedly weak factory orders data for February, released by the Commerce Department.
The ISM services reading comes two days after it reported that manufacturing growth slowed in March while price pressures increased.
The service sector represents about 80% of US economic activity, including everything from restaurants and hotels to banks and airlines.
