US service sector grows at slowest pace in 2 years

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Associated Press

Posted on July 5, 2012 at 9:02 AM

Updated Thursday, Jul 5 at 9:03 AM

WASHINGTON (AP) — U.S. service companies, which employ roughly 90 percent of the economy, grew in June at the slowest pace in nearly two and a half years, adding to worries that the economy has weakened.

The Institute for Supply Management says its index of non-manufacturing activity fell to 52.1 last month from a May reading of 53.7. That's the lowest reading since January 2010.

Any reading above 50 indicates expansion.

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