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A waitress delivers a tray of food to customers at a Denny restaurant in New York.
Victor J. Blue | Bloomberg | Getty Images
The services sector in the United States has grown faster than expected, according to data released Wednesday.
The non-manufacturing index of the Institute for Supply Management rose from 55.5 in April to 56.9 in May. The economists surveyed by Refinitiv were expecting the index to remain unchanged. A number greater than 50 indicates an expansion, while an impression less than 50 indicates a contraction.
Activity in this sector reached 61.2 in April, up from 59.6 in April, the 118th consecutive month in expansion. New orders in the services sector also grew at a faster pace in May compared with April.
"The non-manufacturing sector continues to experience a slight increase in activity, but it is stabilizing globally," said Anthony Nieves, president of the Institute for Supply Management, in a statement. "Most respondents are optimistic about general economic conditions, but tariffs and employment resources remain a concern."
The ISM data follows the release by ADP and Moody's Analytics of much lower employment data than expected. Private employment increased by only 27,000 in May. Economists forecast growth of 173,000 people, according to a Dow Jones estimate.
The Treasury loses losses after the publication of ISM data. The two-year rate has traded at 1.81% after hitting its lowest level since December 2017 earlier in the day. The 10-year return was reset to 2.1%.A flawless stay
Data on services were also greeted with surprise after the May ISM manufacturing indicator fell, which hit its lowest level since October 2016.
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