Services businesses extend to the slow pace of 17 months

WASHINGTON (AP) - services businesses such as restaurants, hotels and financial companies have experienced lower growth in 17 months in July.The report Wednesday from the Institute of supply management confirms other data showing the economy are struggling two years after the official end of the recession.It has also established Wall Street course to his day consecutive eighth decline. The Dow Jones industrial average fell more than 73 points and more broad index has also decreased.The trade for the purchase of Executives group, said its index for services companies fell to 52.7, 53.3 in June. Any reading above 50 indicates expansion.The ISM index covers 90% of the active population. It reached a record high of five years of 59.7 in February, but has fallen since then. July reading was the lowest since February 2010.New orders to service companies, an indication of future business, has increased, but at a slower rate since August 2009, the report of the ISM. Service companies are still hiring more workers, said the report. But employment growth dipped from July.The report "suggests that the economy is not sliding into a recession, but rather that the growth is very low," said Paul dales, Economist at capital economics.Separately, businesses said Department of Commerce orders cut for airplanes, cars and heavy machinery in June. Factory orders fell by 0.8 per cent, the second decline in three months.Demand for durable goods fell by 1.9% in June. Which is slightly lower than a preliminary estimate released last month. Durable goods are products that should last at least three years.Companies are still investing in equipment and other goods. A key category that measures their investment increased by 0.4%. But demand for the company for transportation equipment fell by 8.6%. Which reflects decreased 28.9% of the orders of commercial aircraft and a 2.7 percent decline in orders for automobiles and auto parts.Economic growth has slowed down less than 1% in the first six months of this year, the Government said Friday. Consumer spending, which fuels of 70% of economic activity, fell in June for the first time since September 2009.As economy fell, so hiring. Employers added only 18,000 new jobs in June, less than nine months. The unemployment rate increased to 9.2%, the highest level this year.The Government will release the July jobs report Friday. Economists predict only 90,000 jobs were added last month, and the unemployment rate has not changed. The economy needs about three times as many jobs to reduce unemployment.Much of the weakness comes from the high prices of gasoline since last year. Which reduces the amount of money, consumers may spend on discretionary goods such as furniture, electronics and appliances. Expenditure on these categories are fallen three straight months.The manufacturing sector was a main factor of growth since the end of the recession. But it has declined since this spring. Plants recorded their lowest growth in two years in July, separate ISM manufacturing index which was left Monday.Most economists have reduced their forecasts for economic growth based on the recent string of weak data. Dales now expects growth of only 2 percent in the second half of the year, at the bottom of a previous forecast of 2.5 per cent.The ISM, a group of trade for the purchase of executives based in Tempe, Arizona, compiles its index by surveying service sector approximately 375 purchasing executives through country.___AP Economics writer Martin crutsinger contributed to this report.