WASHINGTON: The US economy's service sector growth eased back in August from July's fast pace, with employment, export orders and prices declining, the Institute for Supply Management said Thursday.
The ISM non-manufacturing purchasing managers index (PMI) fell to 59.0 in August from the July surge to 60.3.
The August decline was less than expected, with analysts' estimates hovering around a 58.4 number.
A reading above 50 indicates growth. The service sector, which accounts for roughly 80 percent of US economic activity, continues to show strength after 67 months of expansion, the ISM said.
"Overall, respondents continue to be optimistic about business conditions and the economy. This is reflected by indexes that are again strong; however, lower than what was seen in July," said Anthony Nieves, chair of the ISM's services business survey committee.
Fifteen of the 18 industries surveyed reported growth, with transportation and warehousing, real estate, and construction among the best performing.
Only the mining industry reported a contraction amid a fall in oil and other commodity prices.
"All told, the non-manufacturing segment of the economy is doing well... and will be more than sufficient to offset the weakness in factory conditions," said Ryan Sweet of Moodys Analytics.
The ISM reported Tuesday that its manufacturing PMI fell to 51.1 in August, the lowest level so far this year, from 52.7 in July.
Comments
Comments are closed.