Markit Economics released its preliminary services purchasing managers' index (PMI) for the U.S. on Thursday. The U.S. preliminary services purchasing managers' index (PMI) declined to 54.8 in June from 56.2 in May, missing expectations for an increase to 56.7.

A reading above 50 indicates expansion in economic activity.

The decline was driven by a decrease in new business growth and hiring. The preliminary new business index declined to 55.0 in June from 55.7 in May.

"A slowdown in the economy at the end of the second quarter may mean the Fed takes a further pause for thought before hiking interest rates. The latest flash PMI surveys showed the smallest rise in service sector activity since January and the slowest growth of factory output for over a year and a half, linked to the strong dollar," Markit Chief Economist Chris Williamson.