ISM Services Index Contracts in January

The economy’s service sector contracted in January, the Institute for Supply Management said Tuesday.

ISM’s services index fell to a reading of 41.9, from 54.4 in December, the group said. The January reading was the lowest since October 2001.

The index measures non-manufacturing components of the economy. Figures of more than 50 indicate expansion; below that level shows contraction.

Analysts had expected the index to fall to 53, Bloomberg reported.

The services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.