Oil declined for a second day after service industries grew in August at the weakest pace in seven months, signaling that the U.S. economic rebound may slow.

Futures dropped after the Institute for Supply Management’s index of non-manufacturing business, which covers about 90 percent of the economy, fell to 51.5 in August from 54.3 the prior month. The expansion, reported Sept. 3, was the smallest since January. The Labor Department said the same day that companies in the U.S. added more jobs in August than forecast.

“The thing that dampened the optimistic sentiment from the employment report was the non-manufacturing ISM for August,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “People are still cautious, there is still a lot of uncertainty.”

The October contract lost as much as 51 cents, or 0.7 percent, to $74.09 a barrel in electronic trading on the New York Mercantile Exchange, and was at $74.12 at 10:39 a.m. Sydney time. It slipped 0.6 percent to $74.60 on Sept. 3. Prices are down 6.5 percent this year.

There will be no floor trading on the Nymex today because of the U.S. Labor Day holiday, and all electronic trades will be counted as part of the Sept. 7 session.

The U.S. trade deficit probably narrowed in July as a slowing economy prompted Americans to buy fewer goods from abroad, according to the median of 60 estimates in a Bloomberg News survey ahead of the Commerce Department’s Sept. 9 report.