The U.S. economy’s service sector expanded in August, though its pace of growth slowed, the Institute for Supply Management said Friday.
ISM’s monthly services index slipped to a reading of 51.5, from 54.3 in July, ISM said in its monthly report. Figures greater than 50 indicate expansion.
Economists had forecast a reading of 53.2, Bloomberg reported. The index averaged 53.7 from its inception in 1997 through June.
ISM’s services index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.
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