NEW YORK (Reuters) - The pace of growth in the U.S. economy’s service sector accelerated in June, as stronger demand offset slower employment gains, according to an industry report released on Thursday.
The Institute for Supply Management (ISM) said its index of non-manufacturing activity rose to 57.4 from 56.9 in May. The reading topped expectations of 56.5 from a Reuters poll of 59 economists.
A reading above 50 indicates expansion in the service sector and a reading below 50 indicates contraction.
The business activity index matched forecasts, edging up to 60.8 from 60.7 the prior month.
The employment index fell to 55.8 from 57.8 in May, while the gauge on new orders climbed to 60.5 from 57.7.
The prices paid index rose to 52.1 from 49.2.
Reporting by Richard Leong; Editing by Meredith Mazzilli