WASHINGTON — Service businesses experienced their weakest growth in 17 months in July. The report Wednesday from the Institute for Supply Management confirmed other data that show the economy is struggling two years after the recession officially ended.
The trade group of purchasing executives said its index for service companies fell to 52.7, from 53.3 in June. A reading above 50 indicates expansion.
Separately, the Commerce Department reported that businesses cut orders for airplanes, autos and heavy machinery in June. Factory orders dropped 0.8 percent, the second decline in three months.
Demand for durable goods fell 1.9 percent in June. Durable goods are products that are expected to last at least three years.
Business demand for transportation equipment fell 8.6 percent, mostly because of a big decline in volatile orders for commercial aircraft.
