Investing.com - The rate of growth in the economy's service sector picked up in June, according to a report released on Thursday.
The Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 59.1 in June, from 58.6 the previous month.
Economists had forecast a reading of 58.3.
A reading above 50 for the index indicates expansion in the sector, and a reading below 50 signals contraction.
The Non-Manufacturing Business Activity Index increased to 63.9 last month, 2.6 points above May’s reading of 61.3.
Economists had forecast a decline to 60.9.
The New Orders Index registered 63.2 in June, 2.7 points higher than the reading of 60.5 in the previous month.
The Employment Index slipped 0.5 points to 53.6 last month from May’s reading of 54.1.
The Prices Index decreased 3.6 points to 60.7 in June from the prior month’s reading of 64.3.
The ISM indicated that the data reflected growth for the 107th consecutive month, at a faster rate in June.
“Respondents continue to be optimistic about business conditions and the overall economy,” ISM chair Anthony Nieves explained in the report.
“There is a continuing concern relating to tariffs, capacity constraints and delivery,” he added.