June ISM Services Index Reaches 14-Month High

The economy’s service sector growth rate grew at the fastest pace in more than a year in June, the Institute for Supply Management said.

ISM’s services index rose to 60.7 from 59.7 in May, ISM said. The June level was the highest in 14 months.

The service index measures non-manufacturing components of the economy, and figures of more than 50 indicate expansion.

Analysts’ had expected the index to slip to 58, Bloomberg reported.

The services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.