The weak economic outlook was not confined to the service sector.
On Friday, the Federal Reserve reported industrial production in December shank by 0.4% the second month of contractions.
Industrial production, which includes manufacturing, mining and utilities has been hit by a strengthening dollar and global economic weakness.
"With the dollar still rising at a rapid pace and global demand clearly pretty weak we don't expect much from the US manufacturing sector this year,'' Paul Ashworth, chief US economist at Capital Economics, wrote in a research report.
Warm weather also hit industrial production figures.
The unusual temperatures pushed utility output down 2% in December following a 5% decline in November.