A private trade group says the economy's service sector grew in January for the first time since October while job losses are moderating.
The Institute for Supply Management said Wednesday that its service sector index rose to 50.5 last month from a revised 49.8 in December. A reading above 50 signals growth. Economists expected a reading of 51.
The group's employment index showed job losses moderating. It improved to 44.6 in January from 43.6 in December.
The service-sector gauge is closely watched because service jobs comprise more than 80% of non-farm employment. The service sector is highly dependent on consumer spending, which powers more than two-thirds of the economy.