By Ovunc Kutlu
ISTANBUL (AA) – Business activity growth eased in July as demand conditions softened, according to a report by S&P Global released on Thursday.
"Business activity and new orders increased again, albeit at slower rates, as high interest rates in particular reportedly weighed on domestic customer spending," said the report.
The S&P Global Flash US Services Business Activity Index posted 52.3 at the start of the third quarter, down from 54.4 in June. The expectation for the index was to come in at 54.0.
A reading below 50 represents contraction, while above 50 indicates expansion in the sector.
"The service sector remains the main engine of growth in the US economy, though there are signs of the motor spluttering amid rising headwinds," said S&P Global Market Intelligence Chief Business Economist Chris Williamson.
"Business activity rose in July at the slowest rate since February, with the rate of expansion sliding further from May's recent peak in response to sharply reduced growth of new business," he added.