ISM Service Index Falls to 59.2 in January

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he Institute for Supply Management said Thursday that its service economy index fell to 59.2 in January, from a seasonally adjusted 63.9 in December.

The rating was the lowest since September, Bloomberg News reported. The index, which measures the economy’s largest segment, includes such activity as retail, financial, construction and other non-manufacturing industries, like trucking.

Analysts had expected the index to drop to 61.5, with estimates ranging from 59 to 64.5, Bloomberg said. As with all ISM indices, figures above 50 indicate expansion.

On Tuesday, the ISM reported its factory index for January slowed to 56.4 from 57.3 in December. Services make up about two-thirds of the U.S. economy, while manufacturing accounts for about 13%, Bloomberg reported.

The orders backlog index decreased significantly to 48%, after growing for 20 consecutive months, the report said.

The January new orders index decreased to 60.5 from a seasonally adjusted 61.3 in December, ISM said.