WASHINGTON: The dominant services sector of the US economy continued to grow strongly in June, but at a less red-hot pace amid supply issues and a slowdown in hiring, according to an industry survey released Tuesday. After setting a record in May, the Institute for Supply Management (ISM) said its service sector index fell 3.9 points to 60.1, which still indicates a strong expansion. Any reading above 50 indicates growth. The sector — which accounts for about two-thirds of the US economy — has been growing for 13 consecutive months according to the ISM non-manufacturing index, and has expanded for all but two months for 137 months.
“The rate of expansion in the services sector remains strong, despite the slight pullback in the rate of growth from the previous month’s all-time high,” survey chair Anthony Nieves said in a statement. “Challenges with materials shortages, inflation, logistics and employment resources continue to be an impediment to business conditions.” New orders and deliveries slowed, but hiring actually declined last month after five months of increases, as the employment index dropped six points to 49.3 percent.
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