The Institute for Supply Management’s non-manufacturing business activity composite index was 46.4 in July, down from 47.0 in June, on a seasonally adjusted basis, the group said yesterday.
Economists polled by Thomson Reuters had expected a 48.0 level. An ireading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, closely watched for signs of inflation, fell to 41.3 from 53.7, and the employment index decreased to 41.5 from 43.4. The business activity index slid to 46.1 from 49.8, the new orders index slipped to 48.1 from 48.6, backlog of orders dipped to 42.0 from 46.0, and new export orders decreased to 47.5 from 54.5. Inventories grew to 47.0 from 45.0, inventory sentiment fell to 62.5 from 67.0, the supplier deliveries index rose to 50.0 from 46.0, and imports dropped to 45.0 from 47.0.
