The pace of growth in the massive U.S. service sector slowed in November, with employment and business activity expanding at lower rates, according to an industry report Wednesday that provided evidence that cautious spending by consumers and businesses may be slowing economic growth. The Institute for Supply Management (ISM) said its service-sector index fell to 53.9 last month from 55.4 in October. The reading was below analyst forecasts and was the weakest pace of growth since June. The index hit an 8-year high of 58.6 in August. In the ISM survey, any reading above 50 indicates expansion in the service sector, which accounts for 90 percent of U.S. jobs. A reading below 50 reflects contraction. The survey's employment gauge fell to 52.5 in November from 56.2 the previous month to hit its lowest level since May, indicating that job gains could slow when the government reports November's hiring data on Friday. The business-activity index slowed to 55.5 last month from 59.7 in October, suggesting that consumers were reluctant to spend.
