The massive U.S. service sector barely grew in September, with gains mostly due to strong exports, as the country's worst financial crisis since the 1930s deepened, a private research group reported Friday. The Institute for Supply Management (ISM) said its non-manufacturing index fell to 50.2 last month from 50.6 in August. A reading above 50 reflects expansion in the service sector, while a figure below 50 signals contraction. The ISM index has hovered near the 50 level for most of the year. The service sector represents about 80 percent of U.S. economic activity, including businesses such as banks, hotels, restaurants, and airlines. According to the ISM report, educational services, agriculture, utilities, retail, and heath care are growing, while restaurants, real estate and wholesale are contracting. The ISM report's index of service-sector employment fell in September and was in negative territory for the fifth consecutive month, the first slump of this magnitude since 2003. On Monday, the ISM manufacturing report showed the worst reading since October 2001, and earlier on Friday, the government reported the ninth consecutive month of job losses.
