Service Sector Said to Grow at Slower Pace
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The service portion of the U.S. economy expanded for the 25th straight month in April, but at a slower pace than in March, a private research organization said Wednesday, signaling that higher energy prices and inflation concerns were pressuring economic growth.
The Institute for Supply Management said its index of activity among service companies for April fell to 61.7 from 63.1 a month earlier. Analysts had estimated that the index would ease to 61 in April.
Although the index was down, it remained above 50, indicating that the economy’s crucial service sector continued to grow last month.
The institute also said that 14 of the industries it tracks -- including utilities, insurance, retail trade and real estate -- reported growth last month while two -- transportation and legal services -- remained the same. Only entertainment reported decreased activity from March.
Employment in the non-manufacturing sector also increased at a slower rate than in March, with the index hitting 53.3%, down from 57.1%.
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