Service sector index growth slows in Nov.
Bruce Worswick wipes his hands while working under a Jeep in a Pembroke, Mass., transmission shop. U.S. service companies, which employ 90 percent of the work force, expanded at slower pace in November and a measure of employment fell sharply. (Oct. 4, 2011) Credit: AP
Service companies, which employ 90 percent of the U.S. workforce, expanded at a slower pace in November and a measure of employment at those firms fell.
Separately, the government said orders to U.S. factories dropped for the second straight month.
Monday's data show the economy remains vulnerable despite signs of improvement. Still, economists said the broader message is that economic growth and hiring continue at a modest and steady pace.
"As it comes at a time when all the other economic news has been quite good, it is not too much to worry about," said Paul Dales, senior U.S. economist at Capital Economics.
The Institute for Supply Management said Monday its index of service sector activity dropped to 52 from 52.9 in October. Any reading above 50 indicates expansion. The reading was the lowest since January 2010.
The Commerce Department said companies cut their orders to U.S. factories in October for the second straight month. A key measure of business investment also declined.
The report also wasn't all bad. Manufacturers boosted their stockpiles 0.9 percent in October after more modest increases in previous months. That suggests they are optimistic about future sales.
