The Institute for Supply Management said its leading index for the non-manufacturing sector fell in March to 40.8. In February, the index stood at 41.6.
It was the sixth straight month the Purchasing Managers Index declined for non-manufacturing businesses.
Figures below 50 indicate shrinking business activity.
On the positive side, new orders increased 1.9 percent to 38.8.
However, the employment index dropped 5 percentage points to 32.3 percent.
The price index for the month fell 9 percentage points to 39.1, the report said.
Of the 18 business sectors that report as non-manufacturing, only real estate, rental and leasing businesses reported increased activity for the month.
The sharpest decline was reported by wholesale trade, followed by management, education and agriculture.
In general, "respondents remain concerned about the negative economic outlook and rising unemployment," said Anthony Nieves, chairman of the Institute for Supply Management Non-Manufacturing Business Survey Committee.
Copyright 2009 by United Press International.
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