Service sector expands at a slower pace in September

The index hit a five-year high of 59.7 percent in February as job creation peaked, but has fallen off since then as the economic recovery stalled. 

In July, it fell to its lowest point level in 17 months.

Business activity increased to 57.1 percent from 55.6 percent, reflecting growth for the 26 consecutive months. New orders increased to 56.5 percent from 52.8 percent, also showing growth for 26 months. 

The employment index dropped from expansion to contraction after 12 months of growth, slipping to 48.7 percent from 51.6 percent. 

Still, in another report on Wednesday, the economy added 91,000 jobs in September, ADP Employer Services said. 

Nearly all of those jobs — 90,000 — were created in the service sector. 

Prices are still increasing but at a slower pace, dropping to 61.9 percent from 64.2 percent.

The ISM, a trade group of purchasing executives based in Tempe, Ariz., compiles its service sector index by surveying about 375 purchasing executives across the country.