The Institute for supply Management (ISM) services index fell to 60.1 from a record 64 in May.

The data show that the service sector employment index fell to its lowest level so far this year.

Us service providers expanded at a slower-than-expected pace in June, with an employment indicator falling, reflecting employers' continuing difficulties in hiring.

The Institute for supply Management (ISM) services index fell to 60.1 from a record 64 in May. Orders and business activity also fell. Economists surveyed by Bloomberg expected a median of 63.5.

Although it is cooler than a month ago, demand for services such as restaurant catering, hotel accommodation and travel remains strong, according to the report. The backlog of orders reached its highest level since the data were collected in 1997.

Meanwhile, the service sector employment index fell to its lowest level so far this year, falling to 49.3 from 55.3 in May. The results are similar to those of the manufacturing survey, which also shows a decline in employment indicators.

Anthony Nieves, chairman of the ISM Services Business investigation Committee, said, "the expansion rate of the service sector is still strong, although the growth rate is slightly lower than last month's all-time high." Challenges such as material shortages, inflation, logistics and employment resources continue to hamper the business environment. "

Sixteen of the 18 service industries grew in June, led by the arts, entertainment and leisure industries. Real estate and agricultural reports decreased.