Key US service sector decelerates: ISM

0 Comments | AFP, July, 2006

WASHINGTON (AFP) — The US economy's massive service sector cooled in June, a survey by the Institute of Supply Management showed.

The ISM nonmanufacturing index fell to 57.0 percent in June from 60.1 percent in May.

Any number above 50 indicates growth, so the latest report suggests a slower pace of expansion in services, which makes up the bulk of economic activity. But the figure was below the average Wall Street estimate of 59.0 percent.

Anthony Nieves, who heads the ISM survey committee, noted that the index increased for the 39th consecutive month in June, but that most components showed a slower pace of growth.

Fourteen of 16 non-manufacturing industry sectors report increased activity in June.

Prices remained an area of concern for...