Your Economy (No Politics)

[Bullwinkle]

U.S. ISM Services Index Fell to 56.8 in January From 61
Bob Willis in Washington


Feb. 3 (Bloomberg) -- Growth in the U.S. services industry eased in January to a pace that shows the largest part of the economy remains robust.

The Institute for Supply Management's index of financial services, construction, retail and other non-manufacturing businesses fell to 56.8 last month from 61 in December. January's reading compares with last year's average of 60.1, when the economy by 3.5 percent. Readings higher than 50 indicate growth.

Increased hiring and rising incomes may fuel a rebound in spending in the first quarter after a hurricane-induced slump late last year, economists said. Wal-Mart Stores Inc., the world's largest retailer, said sales matched forecasts in January as holiday gift cards, warm weather and a rebound in consumer confidence bolstered spending.

``Spending and investment will both pick up from a disappointing fourth quarter,'' said David Sloan, chief U.S. markets economist at 4Cast.com in New York, before the report. ``We'll have stronger growth in the first quarter, probably above 3 percent.''

The industries included in the index account for about 90 percent of the economy. Economists forecast a reading of 60, according to the median estimate in a Bloomberg News survey.

http://www.bloomberg.com/apps/news?pid=10000087&sid=a40WSu8O25ls&refer=top_world_news