Economic activity in the US services sector grew in June for the sixth consecutive month, but at a slower pace, purchasing and supply executives in the latest  Non-Manufacturing ISM Report On Business from the US Institute of supply management.

Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee and senior vice president - - supply management for Hilton Worldwide commented: "The NMI (Non-Manufacturing Index) registered 53.8 percent in June, 1.6 percentage points lower than the 55.4 percent registered in May, indicating continued growth in the non-manufacturing sector, but at a slightly slower rate.

The Non-Manufacturing Business Activity Index decreased 3 percentage points to 58.1 per cent, reflecting growth for the seventh consecutive month. The New Orders Index decreased 2.7 percentage points to 54.4 per cent, and the Employment Index decreased 0.7 percentage point to 49.7 per cent, reflecting contraction after one month of growth. The Prices Index decreased 6.8 percentage points to 53.8 per cent in June, indicating that prices are still increasing but at a slower rate than in May. According to the NMI, 15 non-manufacturing industries reported growth in June. Respondents' comments are mostly positive about business conditions; however, there is concern about the effect of employment on the economic recovery."

The 15 industries reporting growth in June based on the NMI composite index - - listed in order - - are: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Information; Mining; Accommodation & Food Services; Transportation & Warehousing; Wholesale Trade; Management of Companies & Support Services; Public Administration; Construction; Utilities; Health Care & Social Assistance; Retail Trade; and Professional, Scientific & Technical Services. The two industries reporting contraction in June are: Other Services and Finance & Insurance.

Employment activity in the non-manufacturing sector contracted in June after one month of growth. ISM's Non-Manufacturing Employment Index for June registered 49.7 percent. This reflects a decrease of 0.7 percentage point when compared to the 50.4 per cent registered in May. Eight industries reported increased employment, seven industries reported decreased employment, and three industries reported unchanged employment compared to May. Comments from respondents include: "All open positions either frozen or being eliminated. New early retirement incentives will further deplete the workforce" and "Result of attrition and hiring freeze."

The industries reporting an increase in employment in June - - listed in order - - are: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Retail Trade; Management of Companies & Support Services; Wholesale Trade; Transportation & Warehousing; Health Care & Social Assistance; and Information. The industries reporting a reduction in employment in June - - listed in order - - are: Other Services; Utilities; Professional, Scientific & Technical Services; Finance & Insurance; Public Administration; Accommodation & Food Services; and Educational Services.