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Service Sector Increases at Slowest Pace in Two Years

Associated Press (07/05/12)

The service sector in June grew at the slowest pace in nearly two and a half years, more evidence that the economy has weakened. However, those same companies increased hiring last month. The Institute for Supply Management reported on July 5 that its index of nonmanufacturing activity fell to 52.1 last month, from a May reading of 53.7, the lowest reading since January 2010. The survey’s employment index rose to 52.3, up from 50.8 in May.