NEW YORK – The vast U.S. services sector grew for an 11th straight month in December but at a slower pace, a private survey said on Monday, the latest in a series of data to underscore a modest economic recovery.
The Institute for Supply Management said its index of non-manufacturing business activity slipped to 54.7 in December 2002 after a strong surge to 57.4 in November. The December reading was slightly lower than forecasts for a drop to 55.9.
The services sector includes a large swathe of businesses from entertainment to banking, and makes up the vast majority of the U.S. economy. Any number on the ISM index above 50 denotes expansion; readings below 50 show contraction.
A more closely watched index on factories nationwide conducted by the same research group rocketed well above expectations in December, showing broad strength in nearly every sub-category. That fueled a powerful stock market rally on the first trading day of the New Year and sparked some optimism the ISM services index would show similar strength.
The non-manufacturing new orders index, an indicator of future growth in services, eased a bit to 56.3 in December after rocketing up to 58.0 in November. Tempe, Arizona-based ISM's factory report for December, by contrast, showed the biggest one-month surge in new orders in two decades.
Fox News First
Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox.
By entering your email and clicking the Subscribe button, you agree to the Fox News Privacy Policy and Terms of Use, and agree to receive content and promotional communications from Fox News. You understand that you can opt-out at any time.