Find a list of your saved stories here

US services firms register slowest growth in nearly a year

US services firms register slowest growth in nearly a year


1 photo
Save Story

Save stories to read later


Estimated read time: 1-2 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

WASHINGTON (AP) — U.S. services firms grew last month at the slowest pace since August 2016, a performance consistent with only modest economic growth.

The Institute for Supply Management said Thursday that its services index slipped in July to 53.9 from June's 57.4. It was the lowest reading since the index registered 51.7 in August 2016. Still, anything above 50 signals growth, and American services companies are on a 91-month winning streak.

Production, new orders, hiring and export orders all grew more slowly in July.

The index came in lower than economists had expected and below the 55.9 average over the past 12 months. Anthony Nieves, chair of ISM's services survey committee, said the July reading is consistent with overall U.S. economic growth of 1.9 percent a year, a mediocre pace and about what the economy has averaged so far this year. Growth picked up to a 2.6 percent annual pace from April through June after getting off to a slow 1.2 percent start the first three months of 2017.

Still, Nieves said he suspects the slowdown just reflects the summer doldrums. He noted that respondents to the survey "project that things will pick up going into the fall."

Services are an important component of the U.S. economy. Private service-sector workers — from cashiers to stock brokers to nurses — hold more than 70 percent of American jobs.

Consumer spending on services, which accounts for nearly half of U.S. economic activity, rose at a 1.9 percent annual pace from April through June, the slowest pace since the first quarter of 2016, the Commerce Department reported recently.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Photos

Most recent Business stories

Related topics

Business
PAUL WISEMAN

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast