The U.S. service firms, which employ nearly 90% of the country’s work force, experienced their weakest growth in 17 months in July. A report confirms other data that show the economy is struggling two years after the recession ended. The Institute for Supply Management says its index for services companies fell to 52.7, from 53.3 in June. Any reading above 50 indicates expansion. The ISM’s index covers a range of service industries, including health care, retail and financial services. The index reached a five-year high of 59.7 in February but has fallen since then.
Growth slowed to less than 1% in the first six months of this year, the government said Friday. Consumer spending, which fuels much of the nation’s economic activity, fell 0.2% in June. It was the first decline since September 2009. Less spending has hurt service-sector companies, such as restaurants, retailers, and amusement parks.
