UPDATE 1-U.S. non-manufacturing sector growth slows in June

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NEW YORK, July 6 (BestGrowthStock) – Growth in the U.S. service
sector slowed in June as new orders fell and employment
contracted, bolstering the view that overall economic growth
will moderate in the second half of this year.

Economists said that although the Institute for Supply
Management report on the vast U.S. services sector was
consistent with a slow down it was still a far cry from the
“double-dip” scenario that some investors fear.

U.S. stocks (Read more about the stock market today. ), battered by weeks of declines, continued to
enjoy a sharp rebound on Tuesday morning, suggesting investors
had more than priced in the data, while safe-haven Treasuries
were little changed in a sign the data had not added to fears
about the strength of the economy.

“It’s consistent with the general tone of data, suggesting
that the pace of growth is a little more moderate,” said
Charles Lieberman, Chief Investment officer at Advisors Capital
Management in New Jersey. “It’s certainly not suggestive of the
double-dip scenario that some people are pushing.

The Institute for Supply Management said its index of
national non-manufacturing or service sector activity fell to
53.8 from 55.4 in May, its slowest pace of growth since
February. The median forecast of 72 economists surveyed by
Reuters was for a reading of 55.

A reading below 50 indicates contraction in the sector,
while a number above 50 means expansion.

The report’s employment component fell to 49.7 from 50.4,
contracting again after turning positive last month for the
first time since December 2007, and confirming recent weak
reports on the labor market.

New orders, one of the first components to respond to signs
of weakness in the economy, also fell, dropping to 54.4 from
57.1, suggesting growth may be moderating, while export orders
turned negative.

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For a graphic on ISM services data click on:

U.S. services sector: The services sector expanded at a
slower-than-expected pace in June
http://link.reuters.com/vuq95m
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(Reporting by Edward Krudy)

UPDATE 1-U.S. non-manufacturing sector growth slows in June