WASHINGTON, (Pakistan Point News - APP -6th Sept,2016) : The US economy's huge service sector unexpectedly slowed in August but remained in expansion mode, according to the Institute for Supply Management on Tuesday. The ISM's purchasing managers index for the service sector, the key engine of the American economy, fell to 51.4 last month from 55.5 in July. That left it just a bit above the 50 line between growth and contraction. Analysts had been expecting the index to hold steady.
New orders and business activity were sharply slower, and employment growth eased, the ISM reported. PMI survey respondents called business stable, with some expecting a pickup in the fourth quarter beginning in October. "Still recovering from the current downturn in the renewable energy market which is expected to pick up in the fourth quarter," said one respondent in the professional services sector. "The business environment has softened a bit over the last month.
There are now opportunities to fill in the marketplace," said another from the retail trade business. After very slow US economic growth overall in the first half of the year, economists were hoping for a rebound in the third quarter. But the ISM services index, and its index for the manufacturing sector released last week -- which fell into contraction territory -- indicate growth remained sluggish in August.