Service Sector Growing at Slower Pace

Washington, DC, July 6, 2010--The U.S. service sector of the U.S. economy continued to grow in June but at a slower pace, according to the Institute for Supply Management.

The ISM non-manufacturing index fell to 53.8% last month after holding at 55.4% for the past three months.

This is the lowest level since February.

Economists had expected the ISM index for June to inch lower to a reading of 54.0%.

Readings above 50% indicate more firms are expanding than contracting. The index has been above 50% since the turn of the year.

In June, 15 industries reported growth, while two reported contraction.

The business-activity index fell to 58.1% from 61.1% in May.

The new-orders index fell to 54.4% from 57.1% in May, The prices-paid index fell to 53.8% in June from 60.6% in the previous month.