US services firms saw growth slowdown in July

WASHINGTON – U.S. services companies grew at a slower pace in July as business activity and new orders slipped.

The Institute for Supply Management says that its services index fell to 55.7 last month compared to 59.1 in June. Readings greater than 50 signal an expanding economy.

The services sector, where most Americans are employed, has now grown for 102 straight months, or more than eight years.

The index was pulled down by sharp monthly decreases in business activity and news orders, both of which had been relatively high in June. The employment component of the index improved last month.