US service sector activity accelerates in June, ISM survey shows

US services sector activity jumped back in June, according to the results of the most widely-followed survey.

The Institute for Supply Management´s purchasing managers´ index rose from 52.9 to 56.5

Economists had forecast a reading of 53.3.

A gauge of firms´ new orders rose from 54.2 to 59.9, alongside another tracking employment improving from 49.7 to 52.7.

"At a stroke, the gap between the headline index and the level implied by the rate of growth of core retail sales, has been closed. The employment component, though has not risen as far as the headline, orders and business activity indexes. It reversed almost all the May drop, but at 52.7 it is consistent with payroll growth of only about 140K in July or August, reinforcing our view that the jobs numbers will not immediately return to the 200K trend in place before the April/May slowdown," Ian Shepherdson, chief economist at Pantheon Macroeconomics said in a research report sent to clients.