SERVICE COMPANIES GREW IN FEBRUARY AT A FASTER PACE

WASHINGTON» Service companies grew at a faster pace in February than the previous month, an indication that the economy was still expanding immediately after the first cases of the coronavirus were reported in the U.S.

The Institute for Supply Management said Wednesday that its service-sector index rose to 57.3 from 55.5 in January. Any reading above 50 signals an expansion. The index covers retail, health care, hotels and restaurants, and professional services, among other sectors.

Service companies added jobs at a faster pace last month than in January while business activity declined, according the survey. Strong consumer spending, a healthy job market and decent pay gains are driving a healthy service sector and broader economy, but businesses have been cutting sales and profit expectations as the coronavirus outbreak spreads.

Thirteen of 16 industries reported sales growth in February, including accommodation and food services, rental and leasing and transportation and warehousing.