ISM Services Index Slips in June

The U.S. economy’s service sector expanded in June but its expansion rate fell to a four-month low, the Institute for Supply Management said Tuesday.

ISM’s monthly services index rose fell to a reading of 53.8, from 55.4 in May, ISM said in its monthly report. Figures of more than 50 indicate expansion, while below that shows contraction.

Economists’ forecasts ranged from 52 to 56.6, Bloomberg reported.

Export orders fell to a 48 reading, the lowest this year, while the prices-paid index fell to 53.8, from 60.6, ISM said.

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.