A measure of growth in the massive U.S. service sector was stronger than expected in January, though it remained near six-month lows as employment declined sharply, an industry group reported Wednesday. The Institute for Supply Management (ISM) said its service-sector index was 56.7 in January, up slightly from 56.5 the previous month. In the ISM survey, any reading above 50 indicates expansion in the sector, while a reading below 50 signifies contraction. The rise in the overall index was fueled by a strong rebound in business activity, which jumped to 61.5, its highest level since September, from 58.6 in December. But the survey's employment index fell to 51.6 in January from 55.7 the previous month, while two other components—prices and order backlogs—were below the 50 level for a second consecutive month. The service sector accounts for about 90 percent of U.S. jobs and includes sectors such as retail, construction, financial services, healthcare, and leisure.
