The Institute for Supply Management’s June non-manufacturing report on business released Tuesday, July 6, showed a slower rate of growth in U.S. businesses and a lack of job growth hampering economic recovery.
The June ISM report, which covers about 90% of the nation’s economy, registered at 53.8%, 1.6 percentage points lower than the 55.4% registered in May, and a bit lower than economists’ consensus expectations for a reading of 55.0.
The June figure reflected growth for the sixth consecutive month, but at a slightly lower rate than prior months in 2010. A reading above 50% indicates the non-manufacturing sector economy is generally expanding.
“Fifteen non-manufacturing industries reported growth in June. Respondents’ comments are mostly positive about business conditions; however, there is concern about the effect of employment on the economic recovery,” said Anthony Nieves, chairman of the ISM Non-Manufacturing Business Survey Committee, in the report.