ISM Services Index Contracts in June

The U.S. economy’s service sector contracted in June as prices reached a record high and employment reached a record low, the Institute for Supply Management said Thursday.

ISM’s monthly services index declined to a reading of 48.2, from 51.7 in May, the group said. The index had hit a record low of 44.6 in January.

The services index measures non-manufacturing components of the economy. Figures of more than 50 indicate expansion; below that shows contraction.

Analysts had expected the index to fall to 51, Bloomberg reported.

The survey’s prices index reached an all-time high reading of 84.5, while its employment index fell to 43.8, an all-time low.

The services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.