US service sector seen shrinking in August

The U.S. service sector likely shrank modestly in August, as a pullback in consumer spending pinched retailers and other non-manufacturing industries for a second straight month.
The Institute for Supply Management's index on national service activity likely held at 49.5 in August, unchanged from July, according to analysts polled by Reuters.
A reading below 50 suggests contraction in the sector.
Among the 79 analysts polled, the forecasts on the August ISM non-manufacturing reading ranged from 48.5 to 53.0.
If the index were to come in below 50 in August, it would show the service sector shrinking in six out of the first eight months of this year.
Meanwhile, the smaller manufacturing portion of the economy has not fared much better, although strong exports have offset the slump in domestic demand, analysts said.
On Tuesday, ISM said its U.S. manufacturing activity index dipped to 49.9 in August versus 50.0 in July.
ISM will release its non-manufacturing index at 10 a.m. EDT on Thursday.