ISM non-manufacturing slips touch more than expected in July

Service sector activity in the US slowed a touch more than expected in July, according to figures released on Wednesday.

The Institute for Supply Management’s index of non-manufacturing activity fell to 55.5 from 56.5 in June, missing expectations for a reading of 56.0.

The non-manufacturing business activity index nudged down to 59.3 in July from June’s 59.5.

The new orders index printed at 60.3, up from 59.9 the month before, while the employment index dropped to 51.4 from 52.7.

“The majority of the respondents’ comments reflect stability and continued growth for their respective companies and a positive outlook on the economy," the ISM said.

Capital Economics said: “The modest decline in the ISM non-manufacturing index to 55.5 in July, from 56.5, reversed only a small part of the big increase in June, providing further evidence that economic growth will accelerate in the second half of the year. A weighted average of the two ISM indices in July is consistent with GDP growth rising above 2%.”