ISM Services Index’s Growth Slows in August

The U.S. economy’s service sector expanded in August, though its pace of growth slowed, the Institute for Supply Management said Friday.

ISM’s monthly services index slipped to a reading of 51.5, from 54.3 in July, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast a reading of 53.2, Bloomberg reported. The index averaged 53.7 from its inception in 1997 through June.

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.