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ISM Nonmanufacturing Index Slips in August

Wall Street Journal (09/03/15) Eric Morath

The U.S. service sector grew at a slower pace in August but is expanding at a solid rate, a positive sign for the economy. The Institute for Supply Management’s nonmanufacturing purchasing managers index declined to 59.0 in August from 60.3 in July. The service sector has expanded for 67 consecutive months.

The report’s index for new orders decreased to 63.4 in August from 63.8 in July. Readings above 50 signal expansion. The employment index declined to 56 from 59.6 in July.

“We see a little cooling off on employment, but it’s still growing,” says Anthony Nieves, chairman of ISM’s nonmanufacturing business survey committee.