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By Joshua Kirby
U.S. services activity continued to grow in July for the seventh straight month, indicating continued strength in the sector.
The Institute for Supply Management’s services-activity index on Thursday showed a July figure of 52.7, still positive but slowing from 53.9 in June. Economists had expected the index to sink a little more to 53.3, according to a poll carried out by The Wall Street Journal.
Any reading over 50 marks expansion in the sector, which has grown every month since the beginning of the year, and almost every month for the last three years.
“There has been a slight pullback in the rate of growth for the services sector, ” said Anthony Nieves, chair of the ISM Services Business Survey Committee. He pointed to slower growth in business activity, new orders and employment in the sector, but noted respondents’ cautious optimism about the overall economy.
The business-activity index slowed two points, while new orders decelerated but at a lesser rate, the ISM’s figures showed. The supplier deliveries index meanwhile rose to 48.1, indicating a lessening of the pace of deliveries in the month.
The employment index meanwhile fell to 50.7, suggesting an easing in the services jobs market.
Fourteen of 18 industries surveyed by the ISM expanded in July, including construction, accommodation & food services, real estate and retail.
Four industries meanwhile declined, namely mining, agriculture & forestry, the arts and finance.
Write to Joshua Kirby at [email protected]; @joshualeokirby
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