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US services sector growth slows for 2nd straight month in Aug: Markit

A Gap employee folds clothes at a Gap Store in San Fransisco, California.
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A Gap employee folds clothes at a Gap Store in San Fransisco, California.

The pace of growth in the U.S. services sector fell for a second straight month in August, dropping to its lowest level since May, a survey showed on Monday.

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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.

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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 November 2012.

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.

By Reuters

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