Service sector growth slows a bit in January

WASHINGTON (AP) — Growth at service companies slowed slightly in January on a decline in new orders and business activity. But hiring improved.

The Institute for Supply Management says its index of non-manufacturing activity dipped to 55.2 in January from 55.7 in December. That's above the 12-monrth average of 54.5. A reading above 50 indicates the sector is expanding.

The report measures growth in industries that cover 90% of the work force, including retail, construction, entertainment and leisure, health care and financial services.

A gauge of hiring rose to its highest level in nearly seven years. Service firms added a modest number of jobs in January, the government said last week.