Trade group’s measure of US service sector activity dips in Aug. at slowest pace in 11 months

US service sector contraction slows in August

NEW YORK — A trade group’s measure of U.S. service sector activity shows last month’s decline was the slowest in 11 months.

The Institute for Supply Management says its service index, which covers hospitals, retailers, financial services companies and more, came in at 48.4 in August, from 46.4 in July.

Economists polled by Thomson Reuters expected a reading of 48; anything below 50 indicates the service sector is shrinking.

The ISM says this survey of purchasing executives in 18 industries tracks more than 80 percent of the country’s economic activity. The metric covers indicators such as new orders, employment, business activity and inventories.