WASHINGTON (AP) – U.S. service firms grew at a slightly faster pace in June, as business activity and new orders increased.
The Institute for Supply Management said Monday that its services index edged up to 56 in June from 55.7 in May. Any reading over 50 indicates that services firms are expanding.
Steady hiring over the past year has fueled a consumer spending rebound from a winter slump. Many economists say the economy will expand at an annual rate of 2.5 per cent in the second quarter, after shrinking during the first three months of 2015.
Still, the index’s hiring component slipped in June to 52.7 from 55.3 in May, which indicates that the rate of job growth might slow.
“This was a mixed but still decent report on the U.S. economy,” said Jennifer Lee, a senior economist at BMO Capital Markets.