Summary Box: Service sector growth slows in June; employers cut back on hiring plans

Summary Box: Service sector growth slows in June

SLOWING MOMENTUM: The Institute for Supply Management said its index tracking service-oriented companies slid to 53.8 in June from 55.4 in May. A reading above 50 indicates expansion.

JOBS DECLINE: The service sector accounts for about 80 percent of U.S. employment, so adding jobs there is key to improving the labor market. But ISM said its employment measure declined in June.

HIT FROM EUROPE: Few companies participating in the index send business abroad. But those that do said new export orders fell as Europe struggles with high debt and slowing growth.