Washington: The US economy`s service sector slowed in December, with a deceleration in business activity, new orders and prices, according to the Institute for Supply Management`s survey released Tuesday.
The ISM purchasing managers index for the services sector, the main driver of the economy, slid to 56.2 from 59.3 in November. A reading above 50 indicates growth.
The business activity/production component of the index slowed to 57.2 from 64.4, and other components declined by a lesser degree.
Twelve of the surveyed industries reported continued growth, while five -- arts and entertainment, mining, educational services, transportation and warehousing, and other services -- said business had contracted.
Some companies reported continued trouble with the US government`s revamp of healthcare insurance, the so-called Obamacare reforms.
But they also said that the sharp fall in fuel prices should be a help going forward.
"Low oil prices are easing tensions on wholesale prices," said one respondent from the accommodation and food services sector, while adding: "Obamacare and wages are still the biggest enemies to profitability."
Others called the fourth quarter of 2014 generally strong, and forecast a good first quarter of 2015.
