U.S. services sector activity slows to a six and a half year low

U.S. services sector activity hit a 6-1/2 year-low in August amid sharp drops in production and orders, pointing to slowing economic growth that could further diminish prospects for an interest rate hike from the Federal Reserve this month. The Institute for Supply Management (ISM) said on Tuesday its non-manufacturing activity index fell 4.1 percentage points to a reading of 51.4, the lowest since February 2010. The drop from July was the largest monthly decrease since the 2008 financial crisis