A gauge of service industries declined in July to an almost three-year low as orders continued to cool, indicating a sluggish start to the third quarter for the biggest part of the economy.
The non-manufacturing index fell to 53.7, the weakest since August 2016 and well below the median forecast of economists, data from the Institute for Supply Management showed Monday. While still expanding, the purchasing managers' group's measures of orders and business activity were also the lowest since mid- 2016. Readings above 50 indicate growth.
The business activity measure slumped 5.1 points to 53.1, also the lowest since August 2016.
Export orders declined to the lowest since March, according to the ISM index. That suggests the U.S. trade deficit, which narrowed in June by less than forecast, will be hard- pressed to improve.
Source : Bloomberg