Increase in orders triggers expansion in service industry
The U.S. service industry expanded in July at a faster pace than a month earlier, helped by a pickup in orders, according to a report, Bloomberg said.
The Institute for Supply Management’s (ISM) non-manufacturing index rose to 52.6, from 52.1 in June. The median forecast of 73 economists surveyed by Bloomberg called for no change from June. A reading above 50 signals expansion.
The measure is below the 54.2 average over the last six months.
The ISM non-manufacturing survey’s measure of business activity climbed to 57.2 from 51.7, which was the lowest since November 2009. The gauge of new orders increased to 54.3 from an eight-month low of 53.3. An index of prices paid rose to 54.9 from 48.9.
The employment gauge decreased to 49.3, the first contraction in the measure of jobs this year, from 52.3 in June.
“The employment picture is a little bit of a concern,” said Anthony Nieves, chairman of the ISM committee that sponsored the survey. “Overall, non-manufacturing has been resilient. We’re still on the path for continued growth.”
The ISM services survey covers a broad mix of industries including utilities, retailing, health care and finance, Bloomberg said.