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The numbers: The U.S. economy grew in July at the slowest pace in five months, a S&P surveys showed, and pointed to weaker conditions later in the year.
The S&P Flash U.S. services-sector index fell to 52.4 from 54.4 in the prior month. That’s the lowest reading since March.
Most Americans are employed on the service side of the economy in areas such as high-tech, health care, finance and hospitality.
The S&P U.S. manufacturing sector index, meanwhile, rose to 49.0 from 46.3.
The S&P Global surveys are among the first indicators each month to assess the health of the economy. Any number above 50 points to expansion. Figures below that signal contraction.
Big picture: The large service side of the economy is keeping the U.S. forging ahead, but it might be losing some steam.
Manufacturers, for their part, are lagging well behind and arguably are in a recession of sorts. Not just in the U.S. either. Manufacturers are struggling even more in Europe and other parts of the world as consumers shift spending to services from goods.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
rose in Monday trades.
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