WASHINGTON (AP) – U.S. services firms expanded last month at the fastest pace since November, good news for the U.S. economy.
The Institute for Supply Management said Wednesday that its non-manufacturing index rose to 56.5 in June from 52.9 in May. Any reading above 50 signals growth. Production, new orders and export orders grew faster in June. Employment grew last month after contracting in May.
Services have been a source of strength for the American economy. The ISM services index has shown growth for 77 straight months.
“The rebound in the ISM index reinforces our view that the US economy remains on a firm footing,” Andrew Hunter, an economist at Capital Economics, wrote in a research report.
He expects growth to accelerate to an annual pace of 3 percent in the second quarter and to come it at “a solid” 2 percent for the year.