US services activity recovers in May, ISM says

Activity in the US services sector improved noticeably during the previous month, the results of a closely followed survey showed.

The Institute for Supply Management's purchasing managers' index improved from a reading of 49.4 for April to 53.8 in May.

Economists had pencilled in an improvement to 50.8.

The key subindex linked to new orders rose from 52.2 to 54.1.

A separate subindex tracking prices paid dipped from 59.2 to 58.1, while that for employment edged up from 45.9 to 47.1.

Both for the headline index and all subindices the 50 point level marked the threshold separating an expansion from a contraction.

-- More to follow --