US June service growth eases further than expected

NEW YORK - The pace of growth in the United States non-manufacturing sector eased further than expected in June as new orders and prices paid declined from May, according to a report on Thursday.

The Institute for Supply Management's non-manufacturing business activity index slipped to 57.0 in June from 60.1 in May, below the median forecast of Wall Street economists for a fall to 59.0.

A reading above 50 indicates growth in the factory sector. The June reading marked a 39th straight month of growth.

The services sector makes up about 80 per cent of US economic activity, including agriculture and businesses like restaurants, hotels, banks and airlines.

The survey's prices-paid index fell to 73.9 in June from 77.5 in May, while the jobs component fell to 52.0 from 58.0. Demand for new orders eased to 56.6 from 59.6.

- REUTERS