US service sector activity dips in January

US service sector activity slipped a little in January as some companies expressed uncertainty around what the new US administration's exact policies would be.

The ISM's service sector purchasing managers' index cooled from 56.6 in December to a reading of 56.3 for January.

Economists had been expecting a reading of 57.0 versus a preliminary estimate of 57.2 for the month before.

An executive for the Healthcare & Social Assistance sector told ISM: "Current conditions stable. Uncertainty with Trump presidency and how it is going to impact health care."

On a similar note, an executive from the Public Administration chimed in: "Continued optimism concerning the business environment in the near term."

A key gauge of new orders slipped from 60.7 to 58.6 while another linked to production retreated from 60.9 to 60.3.

The employment sub-index on the other hand improved from 52.7 to 54.7, with that tracking prices paid by firms increasing from 56.1 to 59.0.

As of 1533 GMT the yield on the benchmark 10-year US Treasury note was lower by four basis points at 2.4315%.