The Institute for Supply Management’s index of non-manufacturing businesses, which covers about 90 percent of the economy, rose to 53.7 in May from the prior month’s 53.5, the Tempe, Arizona-based group said today. The median forecast of 75 economists surveyed by Bloomberg News projected 53.4. Readings above 50 signal expansion.
Estimates ranged from 52 to 55.1. The ISM services survey covers industries ranging from utilities and retailing to housing, health care and finance.
Today’s report follows June 1 data that showed factories tempered production and pared inventories in May as the global economy weakened. The ISM manufacturing index fell to 53.5 from a 10-month high in April. At the same time, the orders gauge climbed to 60.1 last month, the highest since April 2011.
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