The U.S. services sector expanded at a slightly slower pace in December as the non-manufacturing business activity composite index was 53.0 in the month, compared to 53.9 in November, on a seasonally adjusted basis, the Institute for Supply Management reported Monday.
Economists polled by Thomson Reuters had expected a 54.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index rose to 55.1 from 52.2.
The employment index increased to 55.8 from 52.5.
The business activity/production index fell to 55.2 from 55.5, the new orders index was at 49.4, down from 56.4; backlog of orders dipped to 46.0 from 49.0; new export orders slid to 51.5 from 58.0; inventories slipped to 48.0 from 54.0; inventory sentiment fell to 57.5 from 60.5; the supplier deliveries index increased to 51.5 from 51.0; and imports fell to 50.5 from 55.0.
Members' general comments on business in the month included:
"Hiring activity seems to remain steady at mid- to senior-level management positions. However, it is uncertain what impact the Affordable Healthcare Act will have on hiring and full-time status in 2014 as more companies are re-evaluating their healthcare benefits strategies for all positions." (Management of Companies & Support Services)
"Business is steady. We are at year-end and the holidays, so it's a little quiet. Expect things to pick up after the first [of the year]." (Construction)
"Early, severe winter weather has had a major impact on business. Both customers and employees were unable to reach the workplace." (Arts, Entertainment & Recreation)
"Steady, with no significant shifts in demand or supply." (Finance & Insurance)
"Overall, we are still seeing the pickup in business which began in the 3rd quarter." (Wholesale Trade)
"General business conditions have improved." (Information)
