Service sector shrinks less than expected

NEW YORK - July 6, 2009 The Institute for Supply Management's services index read 47 in June, up from 44 in May. Economists polled by Thomson Reuters had expected a reading of 45.5 last month.

Any reading below 50 indicates the services sector is shrinking, and June marked the ninth straight month of deterioration. But it was the best showing since September when the index was at 50.

Service industries such as retailers, financial services, transportation and health care make up about 70 percent of the country's economic activity. Any turnaround in the sector requires improved consumer spending.


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