Posted on August 3, 2011 by Trading Point Investment Research Desk at 2:36 pm GMT
Growth in the United States Service industry has slowed down in July according to data released by the Institute of Supply Management today. The ISM services survey covers industries ranging from utilities and retailing to health care and finance.
The ISM non-manufacturing index fell to 52.7 in July from 53.3 a month earlier. Economists forecast were for an increase to 53.5. The ISM group’s index averaged 56.1 in the five years to December 2007, when the last recession began.
The group’s Aug. 1 figures showed manufacturing almost stalled in July as orders shrank. The ISM factory index slumped to 50.9, the lowest since July 2009, from 55.3 a month earlier.
Meanwhile at the same time, factory orders data were released showing a drop in June, hurt by falling demand for transportation equipment.
The Commerce Department said orders for manufactured goods fell 0.8 percent after a revised 0.6 percent increase in May. Economists had forecast a 0.7 percent decline after a previously reported 0.8 percent rise.
Earlier, a private employment report from ADP showed that non-farm employment is falling. The ADP report said companies added 114,000 workers last month following a 145,000 gain in June that was smaller than initially reported. The forecast called for an addition of 100,000 jobs.
The data does not give a good light on the U.S. economy, adding fears of a double dip recession.
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