U.S. Service Sector Growth Slows To 3-Year Low In June-ISM

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Source: REUTERS

(Reuters) - The pace of growth in the U.S. services sector slowed in June to its weakest level in over three years as new orders nearly stalled, though a jump in employment provided an encouraging sign for the labor market.

The Institute for Supply Management said on Wednesday its services index fell to 52.2 last month from 53.7 in May, short of economists' forecasts for a gain to 54.

While a reading above 50 indicates expansion in the sector, June's decline brought growth to its lowest level since February 2010.

A slowdown in new orders offered little optimism for the growth outlook. The index tumbled to 50.8 from 56, making for the lowest level since July 2009, just a month after the recession ended.

Read more: http://www.reuters.com/article/2013/07/03/usa-economy-services-idUSL2N0F80U720130703