Business activity in the U.S. services sector declined at the fastest pace since May of 2020, a sign that the economy could be in a recession already or teetering on the edge.
S&P Global Market Intelligence said Wednesday that its index of services activity registered 47.3 in July, up slightly from the earlier released ‘flash’ estimate of 47.0, but down from 52.7 in June.
This is the fourth straight decline in the seasonally adjusted index which had seen steep expansions earlier in the year.
“US economic conditions worsened markedly in July, with business activity falling across both the manufacturing and service sectors. Excluding pandemic lockdown months, the overall fall in output was the largest recorded since the global financial crisis and signals a