Investing.com - The rate of growth in the economy's service sector accelerated again in May, according to a report released on Tuesday.
The Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 58.6 in May, from 56.8 the previous month.
Economists had forecast a reading of 57.9.
A reading above 50 for the index indicates expansion in the sector, and a reading below 50 signals contraction.
The new orders sub-index ticked up to 60.5 from 60.0 in April. The employment sub-index rose to 54.1 last month from the prior months reading of 53.6. The prices sub-index climbed to 64.3 from April’s 61.8.
“The majority of respondents are optimistic about business conditions and the overall economy. There continue to be concerns about the uncertainty surrounding tariffs, trade agreements and the impact on cost of goods sold,” said ISM chair Anthony Nieves.