U.S. service sector lags behind manufacturing

IHS Markit said its U.S. flash manufacturing purchasing managers index rose to 51.3 in July from 49.8 in the previous month.

Meanwhile, the flash services purchasing managers index rose only to 49.6 from 47.9 in June.
Any reading above the 50 neutral mark indicates improving conditions, while readings below that measure indicates contraction. The flash estimate is typically based on approximately 85%–90% of total survey responses each month.

New businesses were weighed down by reports on challenging demand conditions, especially among service providers. Service sector firms also registered a sharper decline in new orders.