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  • The dominant US services sector accelerated for the second straight month in January, but several industries got off to a slow start in 2020, according to an industry survey released Wednesday. While activity and new orders rose last month, services firms continue to struggle to find workers, the Institute for Supply Management's non-manufacturing report showed. ISM said its non-manufacturing index rose 0.6 points to 55.5 percent last month, which is the highest since August 2019 and above the 12-month average. But while 12 industries reported growth in the month, six experienced a slowdown, the report said. The employment index fell by 1.7 points, as only six industries reported growth. As one survey respondent said: "Dramatic workforce shortage continues." Ian Shepherdson of Pantheon Macroeconomics said "the employment index puts something of a dampener on the report," since it points to a slowdown in hiring in the overall economy. And even the trade truce with China signed last month has not helped the sector much. "We hoped that would give the employment numbers in the non-manufacturing sector a lift, but that hasn't happened," Shepherdson said in an analysis. Services is by far the largest segment of the US economy, and any reading of the ISM index above 50 indicates growth. hs/cs
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  • Key US services sector improves in January: survey
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