U.Ersus. service field adds careers but development slows
The amounts offered a sign for businesses that employ approximately 90 % of the workforce.
The Institute for Supply Management said this week that its index of service sector increase fell in June to 52.2. That is down from 53.7 in May and the lowest reading in more than three years. Any reading News Site above 50 indicates growth.
The index was dragged down by steep falls in new orders and a measure of the company outlook.
Still, a gauge of employment jumped to 54.7, up from 50.1 in May. That suggests services businesses hired more briskly last month and is the first increase in five months.
Growth is measured by the survey at businesses that cover most of the job market. They range from healthcare organizations and construction companies to retail businesses and restaurants.
Growth in the service industry depends mainly on consumers, whose spending drives around 70 % of economic activity. The housing rebound and a pick-up in consumer spending helped increase the index earlier this year.
Spending at retail businesses rose in May, a sign that solid job growth has encouraged Americans to spend more. And the improving job market has lifted consumer confidence to a 51 / 2 - year high.