Institute: US service sectors fell in July to a record three years

NEW YORK (Reuters) – Growth in the US services sector has fallen to its lowest level in three years, with trade concerns weighing on corporate orders and the global economic outlook, a survey released on Monday said.

The Institute for Supply Management said its index for the non-manufacturing sector fell to 55.7 from 55.1 in June. Analysts polled by Reuters were expecting the index to reach 55.5 in July.

A reading above 50 indicates the growth of the sector.

Slower growth in the services sector, which accounts for more than two-thirds of US economic activity, comes against the backdrop of the trade war between the US and China, which is exerting strong pressures on manufacturers.

The index of new orders from the Institute of Supply Management dropped to 54.1 last month, its lowest level since August 2016, after 55.8.

The index of new orders to export rose from 55.5 in June to 53.5.

The last reading of the service price index fell from 58.9 to 56.5.

The employment index is the only positive point: it went from 55.0 to 56.2.

(Reuters)