US Service Sector Slows Down in July

Activity in the services sector slowed more than expected in July.

The Institute of Supply Management’s index fell to 55.7 percent, nearly 3 percent below an expected decline to 58.6 percent from 59.1 percent in June, according to economists polled by Reuters.

The majority of the 16 service industries which responded to the survey cited escalating trade tensions as a primary concern for shipping. Concerns over the tit-for-tat tariffs between the U.S. and other global economic readers took a bite out of business activity despite positive sentiment on domestic conditions.

“Tariffs and deliveries are an ongoing concern,” said Anthony Nieves, chair of the Institute of Supply Management. “The majority of respondents remain positive about business conditions and the economy.”

Despite the decline, a report above 50 percent marks the sector’s 102nd month of expansion. A reading above 50 percent indicates growth in the service sector while a reading below 50 percent signals contraction.

The measure tracks growth in the service industries, including construction, education, wholesale trade and transportation.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza