FASTER GROWTH: The U.S. service economy grew at a slightly faster pace in May. The Institute for Supply Management said Tuesday that its index of non-manufacturing activity edged up to 53.7 last month from an April reading of 53.5. A reading above 50 indicates expansion.
THE ANALYSIS: Economists said the rise in the new orders component of the index was a sign that demand will be solid in coming months. But there was concern that the employment component, while still expanding, slipped to the lowest reading since November.
WHY IT MATTERS: U.S. service companies employ roughly 90 percent of the work force.
