10:13 AM EST, 02/05/2025 (MT Newswires) -- The Institute for Supply Management's US services index fell to a reading of 52.8 in January from 54.0 in December, compared with expectations for no change in a survey compiled by Bloomberg as of 7:35 am ET.

The index indicates slower expansion, which is in line with the Richmond Fed, Dallas Fed and the S&P Global indexes but in contrast with the New York Fed, Kansas City and the Philadelphia Fed measures that signaled contraction.

There were declines in the readings for production, new orders and prices, though all three remained above the breakeven point, while the employment reading increased.

The monthly national services reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US services sector and would be a positive for service-sector stocks. Rising prices would normally be a negative for both stocks and bonds.