Growth in the services sector, where most Americans work, slowed in June following record expansion in May.
The Institute for Supply Management said Tuesday that its monthly survey of service industries retreated to a reading of 60.1, following a all-time high reading of 64 in May. Any reading above 50 indicates the sector is expanding.
It’s the 13th straight month of expansion in the services sector following a two-month contraction in April and May of last year as businesses were forced to shut down during the early stages of the coronavirus pandemic.
The employment index fell into contraction territory with a reading of 49.3, down from May's 55.3, suggesting many companies are still struggling to hire enough workers.
The services report follows last week's manufacturing report, which showed that demand continued to be so strong that companies are struggling to keep up with orders. Supply chain shortages and difficulty finding enough workers contributed to a backlog of orders and late deliveries in the manufacturing sector.
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