By Greg Robb (MarketWatch) – The service sectors of the United States moved back into growth territory, according to a survey of companies released Wednesday by the Institute for Supply Management.

The ISM non-manufacturing index rose to 50.5% from 49.8% in December.

Despite moving back into growth territory, the gain was not as robust as expected. Economists surveyed by MarketWatch forecast the ISM non-manufacturing index to rise to 51.0%. See forecasts of all major U.S. indicators.

Readings above 50% in the diffusion index indicate that activity at more firms is expanding rather than contracting.

The index had been above 50% for two months in the fall but then slipped under the threshold in November and December.

In the most recent survey released this morning, only four industries reported growth, while eleven reported contraction.

The ISM employment measure rose to 44.6% in January from 43.6% in December. The job index is closely watched as a hint of the government’s unemployment report for the month that will be released on Friday.

The employment index has been below 50 since December 2007. It hit a low of 31.1 in November 2008.

Economists see a chance for an increase in nonfarm payrolls in the month, which would be the second in two years.

Details

The new orders index rose to 54.7% from 52.0% in December. The business activity index slipped to 52.2% from 53.2% in the previous month. The price index rose to 61.2% in January from 59.6% in the previous month.

Greg Robb is a senior reporter for MarketWatch in Washington.

If you enjoyed this post then Subscribe to Savvy Investor via RSS