May ISM Services Index Rises

The economy’s service sector growth rate improved in May to the highest level in a year, the Institute for Supply Management said Tuesday.
 
ISM’s services index rose to 59.7 from to 56 in April, ISM said. The May level was the highest since April 2006.

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 55.8, 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.