the numbers a measure of business conditions for service sector companies like hotels restaurants and hair salons slowed in july but still signals an expanding economy the servicesector index fell to 527 from 539 in the prior month that was a larger drop than economists predicted economists expected the institute for supply management’s survey to show serviceoriented business activity slowed to 533 in july this is the seventh month in a row that the index has been in expansionary territory numbers above 50 indicate growth big picture demand for services has been strong in the aftermath of the pandemic people’s desire to travel and go to restaurants has been a balancing force while the industrial side of the economy remains stuck market reaction the dow jones industrial average djia and sp 500 spx fell slightly in thursday trades