US services sector expands in July for 7th consecutive month

By Ovunc Kutlu

ISTANBUL (AA) - Economic activity in the US services sector expanded in July for a seventh consecutive month, according to a report Thursday by the Institute for Supply Management (ISM).

The ISM's non-manufacturing purchasing managers’ index (PMI), also known as the ISM services PMI, came in at 52.7% -- 1.2 percentage points lower than the reading in June of 53.9%.

Analysts expected the index, which indicates the overall economic condition of the services sector, to post a 53.0% reading.

A reading above 50 indicates growth and below that shows contraction.

The US services sector has grown in 37 of the last 38 months, with the lone contraction in December, according to the ISM. The index hit an all-time high of 69.1% in November 2021.

"Fourteen industries reported growth in July," ISM Chair Anthony Nieves said in the report, adding that the PMI figure continues to indicate "sustained growth" for the services sector.

"There has been a slight pullback in the rate of growth for the services sector. This is due mostly to the decrease in the rate of growth for business activity, new orders and employment, as well as ongoing faster delivery times. The majority of respondents are cautiously optimistic about business conditions and the overall economy," he said.