Markit Economics released final services purchasing managers' index (PMI) for the U.S. on Wednesday. Final U.S. services purchasing managers' index (PMI) fell to 53.2 in January from 54.3 in December, down from the preliminary reading of 53.7. It was the lowest level since late-2013.
The index was driven by a slower growth in output and new business. Employment continued to strengthen.
"The US upturn has lost substantial momentum over the past two months, the trend in business activity sliding to the worst for over three years. Slower service sector activity, combined with subdued manufacturing growth, means January's expansion was the weakest seen since October 2012 with the sole exception of October 2013, when business was affected by the government shutdown," Chief Economist at Markit Chris Williamson said.