US service firms expanded in Nov. at slower pace

WASHINGTON (AP) — Service companies, which employ 90 percent of the U.S. work force, expanded at a slower pace in November and a measure of employment at those firms fell.

Separately, the government said orders to U.S. factories dropped for the second straight month.

Today's data show that the economy remains vulnerable despite recent signs of improvement. Still, economists said the broader message from other reports is that economic growth and hiring continue at a modest and steady pace.

"As it comes at a time when all the other economic news has been quite good, it is not too much to worry about," said Paul Dales, senior U.S. economist at Capital Economics.

The Institute for Supply Management said Monday that its index of service sector activity dropped to 52 from 52.9 in October. Any reading above 50 indicates expansion. The service sector has grown for two straight years. But the reading was the lowest since January 2010.

There were some positive signs in the report: New orders and business activity rose.