U.S. Services Expansion Cooled More Than Forecast in January

U.S. service industries began 2019 on a softer note as a gauge of new orders dropped sharply in January to a one-year low, though a gain in employment signaled support for demand.

The Institute for Supply Management’s non-manufacturing index fell 1.3 points to 56.7, the lowest since July and below the 57.1 median estimate of economists, a report Tuesday showed. While the gauge held above the 50 line between expansion and contraction, a measure of business activity fell to a six-month low. Eleven of 18 industries reported growth, the least in two years.