WASHINGTON | U.S. services firms expanded at stronger pace in May compared to the prior month, as companies saw gains in business activity, new orders and employment.
The Institute for Supply Management says its services index rose to 58.6, from 56.8 in April. Any reading above 50 signals growth. The services sector has expanded for 100 consecutive months, or more than eight years.
The index is drawn from a survey of purchasing managers in the services industry, which includes finance, health care and retail and accounts for the majority of U.S. economic activity. The measure of employment picked up in April, although some of the firms interviewed by the survey said they’re struggling to find qualified workers.