WASHINGTON (Reuters) -U.S. services sector activity picked up in August, but employment remained subdued as labor market conditions ease.

The Institute for Supply Management (ISM) said on Thursday its nonmanufacturing purchasing managers index (PMI) increased to 52.0 last month from 50.1 in July. Economists polled by Reuters had forecast the services PMI rising to 51.0.

A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy.

Economists have blamed President Donald Trump’s punitive tariffs for eroding a once-resilient labor market.

The import duties, which have boosted the nation’s average tariff rate to a level not seen since 1934, have stoked fears of inflation, prompting the Federal Reserve to pause its interest rate cut

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