The vast US service sector grew for a 15th consecutive month in February, according to figures published this afternoon, signalling a continued recovery in a key area of the country's economy.
The Institute for Supply Management reported 'continued growth' as firms saw employment, production and prices increase. New orders, however, were down.
The index, which measures activity across the service sector, rose to 59.7 in February from 59.6 in January. Any figure over 50 signifies growth. Economists had expected a slight slowdown in services growth to 59.
Separate official figures showed that new claims for US unemployment insurance fell again last week, suggesting an improving jobs market a day ahead of the keenly awaited February labour numbers.
Initial jobless claims dropped to 368,000 in the week ending February 26, the lowest level since late May 2008, the Labor Department said. Claims were down 5.2% from the previous week's decline in claims. The less-volatile four week moving average last week fell by 12,750 to 388,500.
The Labor Department gives the February jobs numbers tomorrow, with analysts pointing out that severe winter weather may continue to cloud the jobs picture for a second straight month.
Most analysts expect the data to show the economy added 183,000 jobs, compared with 36,000 in January, and the unemployment rate, based on a separate survey, rose to 9.1% from 9%.
After hitting a peak in August, initial jobless claims fell below 400,000 in the week ending December 25 and have hovered around that level since then.
