US services in high gear, jobs subdued

The US services sector grew robustly in February but the expansion slowed from the prior month's record, an industry survey showed on Wednesday.
The Institute for Supply Management's non-manufacturing index fell to 60.8 in February from 65.7 in January, short of Wall Street estimates of a dip to 63.0. A number above 50 indicates growth.
"The one area of concern is the employment index which moderated in the month, which suggests continued subdued job growth," said Sal Guatieri, senior economist at BMO Financial Group.
The survey's employment index slipped in February to 52.7 from 53.4 in January, suggesting an improving but still sluggish labour picture. Growth in new orders eased, with that index edging lower to 60.3 from 64.9.
The services sector includes everything from restaurants and hotels to banks and airlines.
Many economists believe that, given the migration of many manufacturing jobs abroad, a long-awaited revival of the US labour market will have to take place in the service sector.