Service Sector Growth Slowed in Sept.

NEW YORK - The shriveled housing market may be a drag on U.S. business activity, but it hasn't stopped it. The nation's service economy, like its manufacturing sector, slowed in September but still saw growth.

The service sector hasn't seen a month of contraction in four-and-a-half years, according to the Institute for Supply Management's monthly reports.

"I really think it throws some cold water on the notion that the economy is going to fall out of bed," said Wachovia Corp. economist Mark Vitner. "None of the numbers we've seen on the economy point to recession. It points to moderate economic growth."

The ISM's index gauging the health of non-manufacturing …