U.S. service sector seen slowing in August
The growth monitored in the services sector of the United States slowed in August. This followed after the effects of economic resumption and fiscal stimulus failed to maintain the growth’s momentum.
The country’s non-manufacturing activity index placed 56.9 in August, according to the Institute for Supply Management. While it came lower than the 58.1 reading seen in July, it still placed above the 50 threshold that separates expansion from contraction. It also placed higher than the 57 reading predicted by economists.
August had also seen new orders for the services industry dropping to 56.8. While the reading placed below July’s 67.7 record, backlog orders jumped as export orders recovered. The ISM index for the industry’s employment was seen at 47.9 last month, placing higher than the 42.1 record in July.