by Devin Dwyer

The Bureau of Labor Statistics' March jobs report shows the service-providing sector had the biggest number of job losses last month — down 358,000 jobs.

Services have been primary engine of U.S. economic growth in recent years, and the latest numbers don't seem to offer much hope for resurgence anytime soon.

The Institute for Supply Management today released its non-manufacturing index for March, which shows the service sector as a whole remains under pressure. The index is a composite indicator of changes in business activity, the number of new orders, employment levels and rate of supplier deliveries.

The Index fell to 40.8 in March from 41.6 in February.

The drop means the services sector is still contracting, which some economists hadn't expected due to recent gains in retail sales. But there is hope among non-manufacturing outfits that the federal stimulus package will turn things around.

 

The ISM asked businesses a "special question" this month: whether they believe their industry and organization will benefit from the Economic Stimulus Package.

Fifty-two percent said they expect their industries will get a boost from federal stimulus funds. The most optimistic industries were real estate, public administration, educational services, utilities, finance & insurance, construction, health care & social assistance, and scientific & technical services.

Only 46 percent of those surveyed, however, expect their individual companies will benefit from the stimulus package.