The U.S. service sector shrank for the fourth consecutive month in January, a trade association reported Wednesday, but at a slower pace than the previous month. The Institute for Supply Management (ISM) said its service-sector index rose to 42.9 last month from December's reading of 40.1. A reading below 50 reflects contraction of the massive service sector, while a reading above 50 indicates growth. The ISM service-sector index is based on a survey of companies in 18 industries, including hotels and travel, retail, health care, and mining. Only two service industries in the survey reported growth in January—health care and finance. While Wednesday's report indicates that the economy's decline may be slowing, it does not necessarily signal a rebound. The survey's employment index also continued to weaken, falling to 34.4 in January from 34.5 the previous month. Only one industry—transportation and warehousing—reported an increase in hiring.
