Service sector grows at a slower pace

Growth in the service sector slowed slightly in January as new orders and business activity dropped off, though the overall mood seems more optimistic. 

Overall, the activity among service companies fell to 55.2 from 55.7 in December, but amid the slowdown, hiring picked up pace, reflecting six straight months of growth, the Institute for Supply Management reported on Tuesday.

Readings above 50 percent signal expansion. 

“There seems to be some stabilization in recent months. Business seems a little more confident, and consumers are participating once again," said one respondent in the retail trade industry. 

Business activity slipped to 56.4 from 60.8, while new orders were down to 54.4 from 58.3, according to the survey. 

The index is a survey of a wide variety of businesses — the sector employs 90 percent of all workers, including those employed at restaurants, hotels and retailers.

---