Economic activity in the US nonmanufacturing sector expanded in December at a slower rate than in November, according to the Institute for Supply Management’s nonmanufacturing index, released today. ISM’s nonmanufacturing index fell in December to a reading of 55.9 from November’s reading of 57.4.

December’s reading represents continued growth in the nonmanufacturing sector but at a slower rate. Any reading above 50% generally indicates improving conditions.

Reuters reported the gauge unexpectedly fell for a second straight month in December; its poll of economists had forecast a December reading of 57.6. However, US services industries are expected to expand in 2018, though perhaps not at a pace as fast as the 12-year high set in October, Anthony Nieves, chair of the Institute for Supply Management’s non-manufacturing business survey committee, said today.

The employment portion of the index increased to a reading of 56.3 in December from 55.3 in November.