Services Sector Rises in January to Highest Since 2008

A private trade group says the economy's service sector grew in January for the first time since September while job losses are moderating.

Source: Source: CNBC | Published on February 3, 2010

The Institute for Supply Management said Wednesday its service sector index rose to 50.5 last month from a revised 49.8 in December.

Any reading above 50 signals growth. Economists polled by Thomson Reuters had 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 percent of non-farm U.S. employment.

The service sector is highly dependent on consumer spending, which powers about 70 percent of the economy.