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US nonmanufacturing growth rebounds in January

The U.S. nonmanufacturing sector grew at a faster rate in January after two months of weakening expansion, the Institute for Supply Management, or ISM, reported.

The ISM nonmanufacturing index rose to 59.9% last month from the seasonally adjusted reading of 56% in December 2017. A reading above 50% indicates growth.

In January, the nonmanufacturing business activity index increased to 59.8% from 57.8% in the previous month, while the new orders index jumped to 62.7% from 54.5%.

The sector's employment index climbed to 61.6% last month from 56.3% in December 2017 and the prices index went up to 61.9% from 59.9%.

Fifteen nonmanufacturing industries reported growth in January, according to the ISM.

"Overall, the majority of respondents' comments are positive about business conditions and the economy," said ISM chair Anthony Nieves. "They also indicated that recent tax changes have had a positive impact on their respective businesses."

Meanwhile, the seasonally adjusted final IHS Markit U.S. services business activity index came in at 53.3 in January, unchanged from the initial estimate and lower than the reading of 53.7 in December 2017.

The final seasonally adjusted IHS Markit U.S. composite output index for January was also unchanged from the initial reading of 53.8, down from the prior month's 54.1.