ISM Services Index Slips in July

The U.S. economy’s service sector showed a downturn in activity last month, the Institute for Supply Management said Wednesday.

ISM’s monthly services index slipped to a 46.4 reading from 47 in June, ISM said in its monthly report.

Figures of more than 50 indicate expansion, while below that shows contraction. The reading fell short of economists’ forecasts of a 48 reading, Bloomberg reported.

The 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.