Economic Buzz: US Non-Manufacturing Index Slows In January

US non-manufacturing index fell to 56.7 in January from an upwardly revised 58.0 in December, although a reading above 50 still indicates growth in the service sector, according to a report released by the Institute for Supply Management on Tuesday. With the bigger than expected decrease, the index dropped to its lowest level since a matching reading in July of last year. New order growth showed a significant slowdown compared to the previous month, with the new orders index slumping to 57.7 in January from 62.7 in December. The business activity index also fell to 59.7 in January from 61.2 in December, while the employment index rose to 57.8 from 56.6.