US services firms grew at slowest pace since February 2014

In this Wednesday, March 23, 2016, photo, dog groomer Angela Kizirian works on Zack at Bark of the Town, in North Andover, Mass. On Friday, June 3, 2016, the Institute for Supply Management, a trade group of purchasing managers, issues its index of non-manufacturing activity for May. (AP Photo/Elise Amendola) In this Wednesday, March 23, 2016, photo, dog groomer Angela Kizirian works on Zack at Bark of the Town, in North Andover, Mass. On Friday, June 3, 2016, the Institute for Supply Management, a trade group of purchasing managers, issues its index of non-manufacturing activity for May. (AP Photo/Elise Amendola)

By Associated Press June 3, 2016 2 min read

WASHINGTON (AP) – U.S. services firms grew at the slowest pace in more than two years last month.

The Institute for Supply Management said Friday that its services index fell to 52.9 last month from April’s 55.7. It was the lowest reading since February 2014. Anything above 50 signals growth.

A measure of employment in services fell last month for the first time since February. Services firms reported slower growth in production and new orders.

The ISM report followed a disappointing report on job creation last month. The Labor Department reported that employers overall added just 38,000 jobs in May, the fewest in five years. Services, which account for more than 70 percent of U.S. jobs, have been a source of U.S. economic strength. The ISM services index has signaled growth for 76 straight months.

The ISM is a trade group of purchasing managers. Its services survey covers businesses that employ the vast majority of workers, including retail, construction, health care and financial services companies.