Summary Box: Service sector barely growing, with the pace of job losses slowing

Summary Box: Service sector barely growing

SERVICE SECTOR LACKLUSTER: The Institute for Supply Management said its service-sector index barely grew last month but reached its strongest level since May 2008. New orders picked up, signaling an increase in future business activity.

LAGGING SERVICE INDUSTRIES: Unlike service companies, manufacturing has been boosted by overseas sales and customers rebuilding their stockpiles. Service companies are more heavily dependent on consumer spending. Wages and salaries are scarcely growing, and Americans are saving more. So there’s not much left over for buying new sweaters.

SLOW TO HIRE: Even though new orders and business activity are improving, service companies are hesitant to hire because of uncertainty over the strength of the economic recovery. ISM’s employment index shrank for the 25th month in a row for January. But the pace of contraction slowed.