Investing.com - Service sector activity in the U.S. grew at a slightly faster rate that expected in May, expanding for the 29th consecutive month, industry data showed on Tuesday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index inched up by 0.2 points to 53.7 in May from a reading of 53.5 in April.
Analysts had expected the index to hold steady at 53.5 in May.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
The New Orders Index increased by 2.0 points to 55.5 from 53.5, while the Employment Index decreased by 3.4 points to 50.8 from 54.2, indicating continued growth in employment at a slightly slower rate.
The Prices Index fell by 3.8 points to 49.8 from 53.6, indicating prices increased at a significantly slower rate in May when compared to April.
Following the release of the data, the U.S. dollar remained higher against the euro, with EUR/USD shedding 0.26% to trade at 1.2466.
Meanwhile, U.S. stock markets held on to gains. The Dow Jones Industrial Average rose 0.25%, the S&P 500 index added 0.35%, while the Nasdaq Composite index advanced 0.3%.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index inched up by 0.2 points to 53.7 in May from a reading of 53.5 in April.
Analysts had expected the index to hold steady at 53.5 in May.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
The New Orders Index increased by 2.0 points to 55.5 from 53.5, while the Employment Index decreased by 3.4 points to 50.8 from 54.2, indicating continued growth in employment at a slightly slower rate.
The Prices Index fell by 3.8 points to 49.8 from 53.6, indicating prices increased at a significantly slower rate in May when compared to April.
Following the release of the data, the U.S. dollar remained higher against the euro, with EUR/USD shedding 0.26% to trade at 1.2466.
Meanwhile, U.S. stock markets held on to gains. The Dow Jones Industrial Average rose 0.25%, the S&P 500 index added 0.35%, while the Nasdaq Composite index advanced 0.3%.