US services sector acitivity slows less than expected in June, ISM says

Activity in America's services sector slowed by less than expected last month, the results of a key survey revealed.

The Institute for Supply Management's services sector Purchasing Managers' Index dipped from 55.9 in May to 55.3 for June.

Economists had penciled-in a reading of 54.3.

A gauge of companies' levels of production rose by 1.6 points to 56.1 but subindices linked to new orders and employment slipped by a similar amount.

Yet the biggest increase was seen in the sub-index that tracks order backlogs, which jumped by 8.5 points to 60.5.

The sub-index linked to the prices paid by companies meanwhile also slipped, by 2.0 points to 80.1, but that for supplier deliveries inched up by 0.6 points to 61.9.

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