U.S. Services Gauge Dips to Five-Month Low as Business Cools

Expansion in U.S. service industries slowed by more than expected in December to end the year on a weaker note as measures of business and employment fell, though new orders remained strong.

The Institute for Supply Management’s non-manufacturing index declined to 57.6, the lowest since July and below the median estimate of economists for 58.5, according to a report Monday. The drop was led by the biggest decline in more than a decade for a measure of supplier-delivery times, as well as a decrease in the gauge of business activity. New orders rose to a six-month high. Mining was the only industry reporting a contraction in December.