Service Sector Expands More Slowly In June

The Institute for Supply Management (

) said its index tracking service-oriented companies dipped to 53.8 in June from 55.4 in May. Analysts were looking for a reading of 55.0 for June. A reading above 50 indicates expansion. The U.S. service sector accounts for roughly 80 percent of employment and is crucial to keeping the economy growing. ISM also said employers' plans to hire declined in June after growing in May for the first time in 28 months. Today's weaker-than-expected reading follows a slew of economic reports from retail sales to pending home sales that have disappointed the Street lately.