The Institute of Supply Management (ISM) released data today showing that the U.S. service sector slowed down last month. The ISM nonmanufacturing index dropped from 53.7 during May to 52.1 in June. That missed the 53 predicted by economists, according to Reuters.
It also marked the lowest level for the service index since January 2010.
Orders for export fell from 53 to 49.5, possibly due to the growing economic turmoil in Europe. The service employment index increased from 50.8 to 52.3, but new service orders fell from 55.5 to 53.3 during June. Economists cited by Reuters said the indexes suggested that businesses were hiring even as productivity slowed.
Earlier this week, the ISM released its manufacturing index, which declined from 53.5 in May to 49.7 last month. The drop was worse than economists had predicted. Still, the services employment index combined Thursday with better-than-expected private payroll numbers from ADP and far fewer-than-expected new weekly jobless claims to give stocks some hope of better times on the way.