Economics
U.S. Services Gauge Drops to Lowest Since 2017
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A gauge of U.S. service industries dropped more than forecast in June to the weakest in almost two years, led by a cooling in employment that may further temper optimism about the labor market heading into Friday’s jobs report.
The non-manufacturing index fell to 55.1 from 56.9, according to an Institute for Supply Management survey Wednesday. Three of the gauge’s four components slipped, with employment dropping by the most in 16 months and new orders declining to the lowest level since December 2017. Sixteen of 18 industries reported growth in June, unchanged from the prior month.