The U.S. services sector expanded at a slightly faster pace in January as the non-manufacturing business activity composite index was 54.0 in the month, compared to 53.0 in December, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
Economists polled by Thomson Reuters had expected a 53.8 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index rose to 57.1 from 54.7.
The employment index increased to 56.4 from 55.6.
The business activity/production index grew to 56.3 from 54.3, the new orders index was at 50.9, up from 50.4; backlog of orders gained to 49.0 from 46.0; new export orders slid to 49.0 from 51.5; inventories rose to 50.5 from 48.0; inventory sentiment increased to 63.0 from 57.5; the supplier deliveries index climbed to 52.5 from 51.5; and imports fell to 48.0 from 50.5.
Members' general comments on business in the month included:
"Slight increase in business being seen currently." (Management of Companies & Support Services)
"Business conditions continue to improve." (Information)
"Activity picking up on new-year projects." (Finance & Insurance)
"All phases of the business seem to be getting stronger and have good first half-year outlooks and booked business." (Professional, Scientific & Technical Services)
"Sales has shown signs of improvement, but lack a sustained pattern to build confidence." (Retail Trade)
"Casual dining remains challenging, tends to slow after the holidays." (Accommodation & Food Services)
"Intense weather in several areas of the country is perceived to have contributed to a slow start in what otherwise is historically a strong month." (Wholesale Trade)
