Activity in the U.S. service sector unexpectedly grew at an accelerated rate in the month of June, the Institute for Supply Management revealed in a report on Thursday.
The ISM said its non-manufacturing index rose to 57.4 in June from 56.9 in May, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge down to 56.5.
The unexpected increase by the index came amid a notable acceleration in the pace of growth in new orders, with the new orders index climbing to 60.5 in June from 57.7 in May.
The report said the business activity index also inched up to 60.8 in June from 60.7 in the previous month.
The prices index also increased to 52.1 in June from 49.2 in May, suggesting that prices in the service sector rebounded.
On the other hand, the employment index fell to 55.8 in June from 57.8 in May, indicating a slowdown in the pace of job growth in the service sector.
A separate report released by the ISM on Monday showed that activity in the manufacturing sector grew at an accelerated rate in the month of June.
The ISM said its purchasing managers index climbed to 57.8 in June from 54.9 in May. Economists had expected the index to inch up to 55.2.
by RTT Staff Writer
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