WASHINGTON (MarketWatch) -- Growth slowed in the U.S. non-manufacturing sector in August, hitting 51.5%, compared with 54.3% in July, the Institute for Supply Management reported Friday.
Economists polled by MarketWatch had expected a reading of 53.5%. A reading above 50% indicates expansion, while a reading below 50% indicates a contraction.
August marks the eighth consecutive month of growth in the overall non-manufacturing index, according to ISM.
The employment index fell to 48.2% in August, from 50.9% in July. The new orders index fell to 52.4% from 56.7%. And the business activity index fell to 54.4% from 57.4%.
Analysts at Barclays Capital had expected some softness in the non-manufacturing data given weak consumer sentiment and a persistently tough labor situation.
However, earlier this week ISM reported that activity among the nation's manufacturing firms accelerated in August, somewhat easing fears of a sharp slowdown in the U.S. economy. That barometer rose to 56.3% in August from 55.5% in July.
Elsewhere Friday, the government reported that the U.S. economy shed 54,000 nonfarm jobs in August, a narrower loss than the decline of 105,000 expected by economists polled by MarketWatch.
