ISM: Service Sector Growth Slows More Than Expected
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Growth in the giant U.S. services sector eased more than expected in June, although new orders grew and job prospects improved moderately, a survey showed Tuesday.
The Institute for Supply Management's (search) non-manufacturing index fell to 59.9 in June from 65.2 in May. Wall Street analysts had been looking for a dip, but only to 63.0.
A number above 50 indicates growth in services, which include everything from restaurants and hotels to banks and airlines, accounting bs, car sales and consumption in general, so I have to believe that maybe it may be reflective of some moderation in the economy," said Peter Kretzmer, senior economist at Banc of America Securities (search).
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More companies said in the survey they intended to take on new workers -- ISM's employment index rose to 57.4 in June from 56.3 in May. A harbinger of growth, new orders edged up to 62.4 from 61.3.
Inflationary pressures continued to build, with the prices paid index inching up to 74.6 from 74.4.