New figures show that the US service sector returned to growth in December, though activity was still sluggish and jobs were still being lost.
The Institute of Supply Management said its non-manufacturing purchasing managers' index increased to 50.1 in December from a surprisingly weak 48.7 in November. Analysts had expected the headline index to be somewhat stronger at 52.
Any number over 50 indicates growth, so the survey shows the sector - which accounts for the bulk of US economic activity - just barely in expansion mode.
A breakdown showed that the business activity index stood at 53.7, up 4.1 points from November, while the new orders index fell to 52.1. Employment remained weak, though this index rose 2.4 points to 44 percent, indicating jobs are still being cut but at a slower pace than in previous months.
Separate figures showed that the US private sector lost more jobs than expected in December. Payrolls firm ADP reported that the private sector shed 84,000 jobs in December, a decline of 42% from the previous month and the smallest drop since March 2008.
Most analysts had expected 75,000 losses in the key report, which comes ahead of the Labor Department's highly anticipated December jobs data on Friday.
