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Washington • U.S. services firms grew at the slowest pace in more than two years last month, a private survey says.
The Institute for Supply Management says its services index fell to 52.9 last month from April's 55.7. It was the lowest reading since February 2014. Anything above 50 signals growth.
A measure of employment in services fell last month for the first time since February. Services reported slower growth in production and new orders.
The ISM report was more bad news on the economy after the Labor Department reported Friday that employers overall added just 38,000 jobs in May, fewest in five years.
Services, which account for more than 70 percent of U.S. jobs, have been a source of U.S. economic strength.
Overall, May was a brutal month for the U.S. labor market, with job losses hitting multiple industries.
Manufacturers cut 10,000 positions, construction companies 15,000. And temporary-help firms shed 21,000 jobs.
The Verizon workers' strike weighed on the telecommunications sector, which lost more than 37,000 jobs.
A rare bright spot was education and health, where job growth accelerated to 67,000 in May. Among all occupational sectors, employers in education and health have added the most jobs over the past 12 months.