ISM Services Index Slips but Shows Continued Expansion

The U.S. economy’s service sector’s activity declined in July but showed expansion, the Institute for Supply Management said Wednesday.

ISM’s monthly services index slipped to a reading of 52.7, from 53.3 in June, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast the index would rise slightly to 53.5, Bloomberg reported.

The index averaged 56.1 in the five years prior to the recession that began December 2007.

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.