US Services Sector Maintains Fastest Growth Since 2024 (3)

US service providers registered the strongest back-to-back growth since 2024 last month as business activity picked up.

The Institute for Supply Management’s index of services was unchanged at 53.8 in January, matching the highest since October 2024, according to data released Wednesday. Readings above 50 indicate expansion in the largest part of the economy.

The composition of the report painted a more nuanced picture. While a pickup in business activity underpinned the overall measure, orders growth cooled and employment barely expanded.

The ISM measure of business activity, which parallels the ISM’s factory output gauge, climbed more ...