Service sector continues growth but at a slower pace

ISM measures activity in industries including retail, utilities, healthcare, financial services and construction.

In February, as the economic recovery seemed to be accelerating, the index hit a five-year high of 59.7 percent but that fell off through the spring — dropping to 52.8 percent in April, the lowest reading since August, as hiring slowed and gasoline and food prices rose steeply, which put pressure on household budgets. 

The index of prices paid dropped to 60.9 percent from 69.6 percent May.  

During the economic downturn and at the peak of the financial crisis, the index hit a low of 37.6 percent in November 2008. The service sector contracted for all but three months in 2009.

ISM’s employment gauge rose slightly to 54.1 percent in June from 54 percent a month earlier.