Services side of U.S. economy barely contracting in July (by Rex Nutting)

WASHINGTON (MarketWatch) --- Economic activity in the nonmanufacturing sectors of the U.S. economy shrank slightly in July, the Institute for Supply Management reported Tuesday. The ISM nonmanufacturing index rose to 49.5% in July from 48.2% in June. Readings over 50% indicate more firms were growing than contracting. The new-orders index fell to 47.9% from 48.6%, while employment rose to 47.1% from 43.8%. The production index slipped to 49.6% from 49.9%. Nine of 18 industries were growing in July.