MW: July ISM services index drops to 52.7% from 53.3%
By Jeffry Bartash
WASHINGTON (MarketWatch) - The Institute for Supply Management on Wednesday said its service-sector index fell to 52.7% in July from 53.3% in June. Economists surveyed by MarketWatch expected the services index to rise to 53.5%. While readings over 50% indicate more firms are expanding than contracting, the index is sharply lower compared to a recent peak of 59.7% in February. The new orders index dropped 1.9 percentage points to 51.7% and the backlog of orders index declined 4.5 percentage points to 44.0%. Thirteen of the 18 service sectors tracked by ISM reported growth. The U.S. service sector - fields such as health, finance and entertainment - accounts for three-fourths of all economic activity. It also employs about four of every five U.S. workers.
