US services sector activity slows unexpectedly in July, ISM says

America's services sector slowed last month, contrary to economists' forecasts, amid a slowdown in output, new orders and price gains, although hiring did pick up.

The Institute for Supply Management's services sector Purchasing Managers' Index fell from a reading of 55.1 for June to 53.7 in July.

Economists had forecast a reading of 55.5.

The sub-index measuring companies' output levels was especially soft, dropping from 58.2 to 53.1, with a separate gauge for new orders slipping from 55.8 to 54.1 and that tracking prices paid dipping from 58.9 to 56.5.

Order backlogs also shrank, from 56.0 to 53.5.

Survey participants' responses on the other hand did not appear to be especially downbeat, with one purchasing manager from the Management of Companies & Support Services sector telling ISM that July was shaping up to be a "record-setting month" while another from the Mining space said that the "capital expense environment was improving".