US Service Firms Grew at Slower Pace in December
WASHINGTON (AP) — U.S. service firms grew at a slower pace in December, a possible indication that various headwinds from turbulent markets to trade tensions could be having an impact on economic activity.
The Institute for Supply Management, which is composed of purchasing managers, says that its service index fell to 57.6 percent last month, down from a November reading of 60.7 percent.
Any reading above 50 signals growth. So even with the December decline, the index shows that service industries, where most Americans work, has been expanding for 107 consecutive months.
The weaker reading on the service economy followed a report last week that the ISM index for manufacturing slowed to the slowest pace in more than two years, with some manufacturers complaining about the impact of President Donald Trump's trade policies.
By AP reporter Martin Crutsinger