The US service sector grew in June but not as much as expected, reflecting the broader sluggishness of the US economic recovery, according to data published today.
The Institute for Supply Management's index of non-manufacturing activity was 53.3 in June, down from 54.6 in May, ISM said in a statement. Analysts' consensus forecast was that the index would fall to 54.0.
An index level above 50 indicates the sector is growing, but the relatively weak figure for June suggests that recent services growth has not been robust.
The data indicates 'continued growth at a slower rate in the non-manufacturing sector,' said ISM, which polls hundreds of businesses in various industries to compile the monthly report.
'The most prominent concern remains about the volatility of prices,' ISM said in its statement.
One bright spot was an increase in employment activity, which indicates that services have been hiring. The ISM's sub-index for employment activity was 54.1 in June, up from 54.0 in May.
Joblessness remains high in the United States, with the unemployment rate at 9.1%.
On Friday, the US government is due to release its next monthly report on unemployment, one of the most closely-watched indicators on the health of the world's largest economy.
