The vast US service sector declined in January but the fall was not as steep as expected, a private research firm reported on Wednesday.
The Institute for Supply Management said its non-manufacturing index stood at a seasonally-adjusted 42.9 percent in January, 2.8 percentage points higher than the December figure.
The level was better than analysts' consensus forecasts of 39 points and the highest since October 2008.
Nonetheless, the sector shrank for the fourth consecutive month, below the 50 percentage point reading that divides growth and contraction.
"While both this survey and its manufacturing cousin point to a continued sharp contraction in economic activity in January, both surveys also hint that the rate of decline in output may be easing slightly," said John Ryding at RDQ Economics.
The report came two days after the ISM manufacturing index showed a rise to 35.6 from 32.9. Similarly, the figure suggested a decline but at a slower pace than in December.
The Institute for Supply Management said its non-manufacturing index stood at a seasonally-adjusted 42.9 percent in January, 2.8 percentage points higher than the December figure.
The level was better than analysts' consensus forecasts of 39 points and the highest since October 2008.
Nonetheless, the sector shrank for the fourth consecutive month, below the 50 percentage point reading that divides growth and contraction.
"While both this survey and its manufacturing cousin point to a continued sharp contraction in economic activity in January, both surveys also hint that the rate of decline in output may be easing slightly," said John Ryding at RDQ Economics.
The report came two days after the ISM manufacturing index showed a rise to 35.6 from 32.9. Similarly, the figure suggested a decline but at a slower pace than in December.
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