The Institute for Supply Management said Friday that its non-manufacturing index fell to 55.7% in July, an 11-month low, from 59.1%.
Economists polled by MarketWatch expected a 58.6% reading. Any reading above 50% indicates expansion.
There was a sharp 7.4-point drop in what’s called the business activity index, which fell to 56.5%, and the new-orders sank 6.2 points to 57%. There were complaints about tariffs and deliveries, as well as overseas growth.
The second-longest post-war economic expansion continues to be the driving force behind gains, as the index has been above the level indicating expansion for 102 consecutive months. Service businesses are more insulated anyway.