The services sector improved for the 48th consecutive month but at a slower pace, according to the Institute for Supply Management's December Report on Business released today.
The Institute's Non-Manufacturing Index registered an overall 53% rating, down from November's 53.9% and well below analyst expectations of 54.8%. An above-50 rating denotes growth, while less than 50 implies contraction.
Diving deeper into index components, new orders took a major dip, dropping seven points to 49.4. This is the first time since July 2009 that new orders have shrunk. However, business activity remained relatively stable at 55.2, and employment advanced 3.3 points to 55.8.
Eight services industries reported growth in December, led by company management and support. Eight others reported contractions for March, with mining claiming the largest dip.
You can follow Justin Loiseau on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.