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Markit's Purchasing Managers' Index of services companies stood at 45.3, up slightly from February but still below the 50+ level that indicates growth.
Now the ISM index of services has climbed from 52.1 in June to 52.6 in July, compared to expectations of a drop to 52.
"Still, over the last three months the index of services is up a healthy 0.8%, and the pattern of growth is more broadly based, although business services and finance remains relatively weak," said Tinsley.
A level above 50 indicates expansion; one below 50 indicates contraction.The upturn in activity was led by Germany, whose own composite output index of services and manufacturing jumped from 54.3 in March to 56.3, the second-highest in nearly three years.
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The Institute for Supply Management's index of service companies fell to 54.4 from 56 a month earlier.
Copper fell after an index of service industries showed a decline for last month, signaling demand may be easing.
The Institute for Supply Management said its index of service industries registered 55.8 in August, the same as in July.
Other data yesterday showed an unexpectedly strong services sector, with the main index of service sector activity at 57.7% in June, up from 57.3% from the previous month.
The Institute for Supply Management said its index of service sector activity fell to 48.2 from 51.7 in May; the reading touched off more misgivings about the health of the economy.
The Institute for Supply Management said its index of service companies, builders and other nonmanufacturing companies rose more than expected after an unexpected retreat in January.
An index of service industries in the United States dropped to a 16-month low in September and suggested that high energy prices may limit the economic expansion.
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