The Institute for Supply Management released its non-manufacturing purchasing managers' index for the U.S. on Thursday. The index fell to 59.0 in August from 60.3 in July, beating expectations for an increase to 58.1.

A reading above 50 indicates a growth in the service sector.

The decline was driven by falls in prices paid, employment and new orders.

The business activity/production index declined to 63.9 in August from 64.9 in July.

The ISM's new orders index decreased to 63.4 in August from 63.8 in July.

The ISM's employment index declined to 56.0 in August from 59.6 in July.

The prices paid index dropped to 50.8 in August from 53.7 in July, the lowest level since April.