US service sector expands at slowest pace for 11 months | City A.M.

The US’ services sector has expanded at a lower-than-expected rate, marking its lowest growth in 11 months, official data has revealed.

The Institute for Supply Management’s non-manufacturing index fell to 55.7 in July, down from 59.1 in June. This was worse than the expected slide to 58.6 and the lowest reading since August 2017.

However the sector, which makes up more than 80 per cent of the US’ economy, is still in growth: a reading above 50 shows expansion.

“There has been a ‘cooling off’ in growth for the non-manufacturing sector. Tariffs and deliveries are an ongoing concern,” the report said. “The majority of respondents remain positive about business conditions and the economy.”

The data release comes on the back of weaker-than-expected jobs growth and mirrors the UK’s own slowing services industry, also published today.