NEW YORK, NY - The Institute for Supply Management (ISM), a trade group of purchasing executives, released data earlier this week showing service sector growth slowed in June, a sign that the economic recovery is weakening, the Associated Press reports.

ISM said its index tracking service-oriented companies dipped to 53.8 last month, down from 55.4 in May, the highest point since the recovery began.

A reading above 50 indicates expansion, and last month??s reading is substantially higher than the 37.2 low recorded in November 2008, but well below the pre-recession high of 67.7 in 2004.

The index tracks business activity, employment, supplier deliveries and new orders within service-oriented industries, including those in hospitals, shops, restaurants, airlines, schools, construction, banks, and consulting firms. And it may prompt economists to revise their expectations for growth in the second half of 2010.

"Everyone is kind of pausing, looking at the landscape, not quite throwing in the towel yet," said Pierre Ellis of Decision Economics, adding that he expects economic growth in the second half to slow to 2.5 percent, compared to 2.7 percent during the first quarter.

One troubling sign cited in the ISM report is a decline in new orders, which signals future business. It fell to its lowest level since December.

ISM also said that hiring plans dropped in June after growing in May for the first time in more than two years. Companies added only 83,000 jobs in June, far fewer than the 200,000 needed each month to decrease the unemployment rate.

Of the 18 industries surveyed, real estate and arts and entertainment grew the most, while results from retailers were mixed.