ISM U.S. services index falls by most since financial crisis
Sept 6 (Reuters) - The U.S. economy's service sector expanded in August but at a slower pace than in July, and the fall from the previous month was the largest since the 2008 financial crisis, according to an industry report released on Tuesday.
The Institute for Supply Management (ISM) said its index of non-manufacturing activity fell to 51.4 from 55.5 the month before. The reading was below expectations of 55.0 from a Reuters poll of 60 economists.
A reading above 50 indicates expansion in the sector and a reading below 50 indicates contraction.
The business activity index fell to 51.8 from 59.3 the month before. That was well below expectations of 58.8.
The declines in both the headline services and business activity indexes were the largest, in point terms, since November 2008 when the financial crisis was roiling the global economy.
The employment index fell to 50.7 from 51.4 a month earlier. New orders dropped to 51.4 from 60.3. The prices paid index fell to 51.8 from 51.9.
The U.S. economy's manufacturing sector shrank in August, according to an earlier ISM report. (Reporting By Dan Burns; Editing by Meredith Mazzilli)
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