WASHINGTON — The U.S. economy’s service sector, which employs 90 percent of the nation’s workforce, grew in May for an 18th straight month, posting slightly faster growth than in April.
The Institute for Supply Management said Friday that its index tracking the health of service companies increased to 54.6 in May from 52.8 in April.
In February, the index hit a five-year high with a reading of 59.7, but it fell in March and April as the service sector was battered by the sharp jump in energy prices. Any reading over 50 indicates expansion in the sector.
Paul Ashworth, chief U.S. economist at Capital Economics, said that even with the slight upturn in May, the index is still running significantly below the 57 to 59 range where it had been from December through March.
“The pace of growth in the non-manufacturing sector has lost a lot of momentum over the past couple of months,” Ashworth said.
The institute, a private trade group representing purchasing managers, said that companies responding to its May survey cited continued concerns about high fuel costs and rising prices for other commodities.
