Investing.com - Activity in the U.S. service sector expanded at a slower-than-forecast pace in July, according to an industry report released on Thursday.
The Institute for Supply Management said its index of non-manufacturing activity fell to 53.9 from 57.4 in June.
Economists had forecast a reading of 57.0.
A reading above 50 indicates expansion in the service sector and a reading below 50 indicates contraction.
The business activity index fell to 55.9 from 60.8 the month before. That was below expectations of 59.6.
The employment index fell to 53.6 from 55.8 a month earlier. New orders dropped to 55.1 from 60.4. The prices paid index rose to 55.7 from 52.1.
According to an ISM report released on Tuesday, activity in the U.S. manufacturing sector expanded in July but at a slower pace than the previous month.