Economic activity in the US nonmanufacturing sector decelerated in January, according to the Institute for Supply Management’s nonmanufacturing index, released today.

ISM’s nonmanufacturing index fell to a reading of 56.7 in January, down from a reading of 58.0 in December.

Readings above 50 generally indicate improving conditions.

“The nonmanufacturing sector’s growth rate cooled off in January,” said Anthony Nieves, chair of the Institute for Supply Management non-manufacturing business survey committee. “Respondents are concerned about the impacts of the government shutdown but remain mostly optimistic about overall business conditions.”

However, the employment portion of the index increased in January to a reading of 57.8 from December’s reading of 56.6. Ten industries reported increased employment, and four industries — arts, entertainment and recreation; retail trade; information; and management of companies and support services — reported decreased employment.