Economics
U.S. Service Industries Expand at Slower Pace Than Expected
- ISM gauge drops almost four points from May’s record
- Services employment index decreases to a six-month low
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U.S. service providers expanded in June by less than forecast as a measure of employment contracted, reflecting employers’ struggle to attract workers in industries like hotels and restaurants.
The Institute for Supply Management’s services index fell to 60.1 last month from a record 64 in May. Readings above 50 indicate expansion. Orders and business activity also settled back. The June figure compared with the 63.5 median projection in a Bloomberg survey of economists.