America’s service sector last month enjoyed its fastest growth for nearly three years according to new figures.
The index of non-manufacturing activity from the Institute for Supply Management jumped from 54.5 in May to 60.6 in June, well above the 50.0 threshold between expansion and contraction.
This marks the highest growth rate since the gauge stood at 60.7 in September 2000.
All the major components of the index managed gains. New orders – a sign of future activity – rose from 54.7 to 57.5; employment ended four months of contraction, jumping from 48.7 to 50.3; and prices climbed from 49.6 to 51.4.
“What really took me by surprise,” declared Ralph Kauffman, chairman of the Institute’s survey committee, “was that not one of the seventeen sectors we sample reported slower activity in June. It was really broad-based.”
The new figures stand in contrast to the ISM’s latest index of manufacturing activity, which last week signalled continued (albeit slowing) decline [WAMN: 03-Jun-03]
Data sourced from: USA Today; additional content by WARC staff