Service sector growth slowed slightly in October

The nation’s service sector grew at a slower pace in October even as hiring posted its highest level in nearly a decade. 

The Institute for Supply Management’s (ISM) latest index, released Wednesday, showed a decrease to 57.1 last month, down from 58.6 in September.

{mosads}The index has fallen for two straight months from an eight-year high of 59.6 in August.

Index readings above 50 reflect expansion.

The index is a survey of a wide variety of businesses — the sector employs 90 percent of all workers, including those at restaurants, hotels and retailers.

Anthony Nieves, chairman of the ISM’s services index committee, said that while the “majority of the respondents’ comments reflect favorable business conditions … there is an indication that there continues to be a leveling off from the strong rate of growth of the preceding months.”

The hiring gauge increased 1.1 percentage points to 59.6 percent from the September reading of 58.5 percent and indicates growth for the eighth consecutive month and the highest level in more than nine years.

A separate ADP report on Wednesday showed that private-sector employers added 230,000 jobs last month and the forecast for Friday’s government report is in line with those levels, a sign of the labor market’s building strength. 

Sixteen of 18 sectors reported growth last month led by construction, retail and agriculture. The contracting sectors were arts, entertainment and recreation, and finance and insurance.

Also, orders for exports fell — as they have in other recent economic reports — to 53.5 from 57.5 in September amid a slowing global economy.