News / Economy

US service sector slows, stocks fall

Monday, 06 April 2015 6:21 PM [ Last Update: Monday, 06 April 2015 6:21 PM ]

A US National Park Service worker blows snow off a bench at Great Falls Park near the Potomac River during a cold snap in Virginia on Feb. 20.

The US economy's service sector slowed in March and the stock market has opened lower amid very weak hiring last month, raising concerns about US economic growth.

The pace of growth in the US service sector fell in March to its lowest level in three months, the Institute for Supply Management (ISM) said in a report Monday.

The ISM's services index fell to 56.5 last month from 56.9 in February. Economists surveyed by The Wall Street Journal had expected last month's index to hold at 56.9.

Meanwhile, US stock index futures fell on Monday, putting Wall Street on track for a lower open on the first trading session since Friday's worse-than-expected US jobs figures.

The Dow Jones Industrial Average was at 17,684.40, down 78.84 points (0.44 percent) five minutes into trade, according to AFP.

The S&P 500 stock market index fell 6.63 (0.32 percent) to 2,060.33, while the tech-rich Nasdaq index dropped 21.33 (0.44 percent) to 4,865.61.

The US Labor Department said on Friday that American companies added just 126,000 new jobs last month, which was far below analysts' estimates.

The unemployment rate was unchanged at 5.5 percent because more people stopped searching for work and dropped out of the labor force.

The insignificant employment gains could raise concerns that the recent weakness in economic growth could be more fundamental rather than due to short-term factors.

Economists say that US economic activity slowed sharply over the past three months and gross domestic product was as low as a 0.6 percent on an annual pace.

AHT/HRJ

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