U.S. businesses grow at slowest pace in 2 years, ISM shows, as economy softens

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U.S. businesses grow at slowest pace in 2 years, ISM shows, as economy softens
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An ISM barometer of business conditions at service-oriented companies such as restaurants, hotels and retailers fell slightly to 55.3% in June and hit the...

The numbers: An ISM barometer of business conditions at service-oriented companies such as restaurants, hotels and retailers dipped to a two-year low of 55.3% in June — yet another sign of a slowing U.S. economy.

Economists polled by The Wall Street Journal had forecast a reading of 54%. The index registered 55.9% in May. The more aggressive Fed strategy has also raised worries the central bank could drive the economy into recession. But for now, both ISM surveys indicate demand is still fairly strong and the economy is fairly stable.“Growth might not be as strong as in the past, but the demand is still there,” said Anthony Nieves, chairman of the survey.

““The shutdowns in China due to the zero-Covid policy have adversely impacted our supply chain,” one senior executive told ISM.

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