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July 6, 2011 12:30 PM, EDT

ISM Services Index Slips but Shows Continued Expansion

An index of the U.S. economy’s service sector declined in June but still showed expansion, the Institute for Supply Management said Wednesday.

ISM’s monthly services index dropped to a reading of 53.3 from a 54.6 reading in May, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast the index would fall to 53.7, Bloomberg reported.

The index averaged 56.1 in the five years prior to the recession that began December 2007, Bloomberg said.

ISM’s services index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.