The Economic Times

US service sector growth dips in June; employment rebounds after months of contraction

US services sector activity saw a slight dip in June as the impact of Middle East war-driven order rushes faded. However, employment rebounded strongly, signaling continued labor market stability. While new orders decreased, order backlogs grew. Falling oil prices helped slow inflation, though underlying price pressures persist due to AI investments. Despite slower economic growth, the Federal Reserve is still expected to raise interest rates.