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Washington - The US economy's service sector slowed in December, with a deceleration in business activity, new orders and prices, according to the Institute for Supply Management's survey released on Tuesday.
The ISM purchasing managers index for the services sector, the main driver of the economy, slid to 56.2 from 59.3 in November. A reading above 50 indicates growth.
The business activity/production component of the index slowed to 57.2 from 64.4, and other components declined by a lesser degree.
Twelve of the surveyed industries reported continued growth, while five - arts and entertainment, mining, educational services, transportation and warehousing, and other services - said business had contracted.
Some companies reported continued trouble with the US government's revamp of healthcare insurance, the so-called Obamacare reforms.
But they also said that the sharp fall in fuel prices should be a help going forward.
"Low oil prices are easing tensions on wholesale prices," said one respondent from the accommodation and food services sector, while adding: "Obamacare and wages are still the biggest enemies to profitability."
Others called the fourth quarter of 2014 generally strong, and forecast a good first quarter of 2015.
