Financial data firm Markit said its preliminary
services Purchasing Managers Index fell to 58.5 in August, below
both the July reading of 60.8 and the analyst expectation for a
read of 59.5.
A reading above 50 signals expansion in economic activity.
"The U.S. service sector continues to enjoy a strong growth
phase, but the latest survey suggests the recovery has lost some
momentum since hitting a post-crisis peak in June," said Tim
Moore, senior economist at Markit.
The component measuring new business rose to 58.2 from 57.3 last
month, while confidence about the year-ahead business outlook in
the services sector rebounded off its lowest level since
Markit's preliminary composite PMI, a weighted average of its
manufacturing and services indexes, fell to 58.8 in August from
60.6 in July.
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