Slowdown eases in non-manufacturing sector

TEMPE, Ariz., July 6 (UPI) -- U.S. business activity in the non-manufacturing sector contracted in June, but the rate of decline has slowed, a research group said Monday.

The Institute for Supply Management said the leading manufacturing index, the Purchasing Managers Index, reached 47 in the month, three points higher than May, but still in decline.

The index uses 50 has the division point between contraction and growth.

In non-manufacturing, business activity rose to 49.8, two ticks below the break-even point for a ninth consecutive month of contraction. The index gained 7.4 points over May, when the Business Activity Index reached 42.4.

The New Orders Index increased 4.2 points to 48.6. The Prices Index also increased, climbing 6.8 points to 53.7, "the first time the index has registered above 50 percent since October 2008," said Anthony Nieves, chairman of the Institute for Supply Management Non-Manufacturing Business Survey Committee.

Real estate, rental and leasing, arts, entertainment and recreation, accommodation and food services, and finance and insurance business sectors all reported increased activity in June. In total, six industries made gains, while 11 reported continued contraction, the report said.