Non-manufacturing index gains in month

U.S. business activity in the non-manufacturing sector shrank in January, but picked up slightly over December, a research group said.

The Institute for Supply Management said Wednesday the leading index for non-manufacturing — called the Purchasing Managers’ Index — registered 42.9 in the month, up 2.8 percentage points from December’s index reading of 40.1.

In the index, numbers below 50 indicate a contracting enterprise. Above 50 indicates growth.

On the plus side, new orders rose 2.7 percentage points to 41.6, and business activity rose 5.3 percentage points, coming closer to the break-even point at 44.2.

On the negative side, the employment index fell slightly, down 0.1 percent to 34.4.

In the January report, two industries — science and technology and transportation and warehousing — reported prices increasing, while 15 reported prices declining.