US Services Sector Contracts at Fastest Pace in Four Years

Reported 12 months ago

According to Bloomberg, the US services sector contracted in June at the fastest pace in four years, mainly due to a sharp decline in business activity and orders. The Institute for Supply Management's composite gauge of services dropped to 48.8, indicating contraction, with the business activity index plunging 11.6 points. This decline signifies a significant reversal from the previous month's growth and suggests a moderation in economic growth. Treasury yields decreased and stocks rose following the release of the data, reinforcing the likelihood of Federal Reserve interest-rate cuts.

Source: YAHOO

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