Service Sector Slows

The pace of growth in the U.S. service sector slowed more than expected in January, as employment and new orders dropped. The Institute for Supply Management's services index dropped to 56.8 in January from 61.0 in December, well below Wall Street's median forecast for a decline to 59.5. A number above 50 indicates growth in the sector.

The services sector makes up about 80 percent of U.S. economy activity, including businesses like restaurants, hotels, hair salons, banks and airlines. The survey's prices-paid index was unchanged at 67.2 compared with December, while the jobs component dropped to 51.1 from 56.9, and new orders fell to 58.0 from 62.2.