U.S. services expanded in January for 14th straight month

In a sign that the U.S. labor market could be gaining steam, the U.S. service sector grew at its fastest pace in nearly five years in January, according to reports.

The Institute of Supply Management said its index of national non-manufacturing activity climbed to 59.4 in January; in December, the index was lower at 57.1. January's reading topped the 57.0 average that economists had projected by a solid margin, indicating that more hiring could be coming to the U.S. 

In the index, a reading below 50 indicates a contraction in the sector, while a number greater than 50 shows an expansion. January served as the 14th consecutive month that the non-manufacturing sector grew in the U.S. This most recent report from the ISM joins its report on manufacturing growth in the U.S. that it released Tuesday - which also showed positive growth among domestic manufacturers. 

Moreover, the service report's price paid component mounted a climb to 72.1 from 69.5, while new orders reached 64.9 from 61.4; The employment component hit its highest level since May 2006, increasing to 54.5 from 52.6. The service sector accounts for 90 percent of jobs domestically.