U.S. services sector activity slowed to a five-month low in December, but remained above a level consistent with solid economic growth in the fourth quarter.
The Institute for Supply Management said on Monday its non-manufacturing activity index fell to 57.6 last month, the lowest reading since July, from 60.7 in November. Analysts polled by Reuters had forecast a reading of 59.0.
Economists said while the drop in the services industries measure echoed recent declines in other business surveys, including the ISM’s manufacturing survey published last week, the reading was still strong by historic standards.
Companies in the wholesale trade industry said they were anticipating “a pullback year in demand for 2019,” citing several factors, including the trade dispute with China, a stock market sell-off, higher mortgage rates as well as labor shortages and higher material costs.
