Service industries expanded in January at about the same pace as the prior month, showing the biggest part of the economy is holding up in the face of federal government budget battles.
The Institute for Supply Management’s nonmanufacturing index cooled to 55.2 last month from a 10-month high of 55.7 in December, the Tempe, Ariz.-based group said Tuesday. Economists projected the gauge would ease to 55, according to the Bloomberg survey median. Readings above 50 signal expansion. Sustained consumer spending and a rebound in housing will probably keep benefiting companies such as MasterCard and PulteGroup, helping propel service industries that account for almost 90 percent of the economy.
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