services sector expands at fastest pace in
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[June 26, 2014]
NEW YORK (Reuters) - The
U.S. services sector expanded in June at the fastest
pace in at least 4-1/2 years, pushed higher by
increasing business activity, a survey showed on
Financial data firm Markit said its "flash" services Purchasing
Managers Index hit 61.2 in June, the highest reading since the
survey began in October 2009, compared with May's final reading of
A reading above 50 signals expansion in economic activity.
The services sector added employees at the fastest rate on record,
matching the 55.4 reading hit in September 2013. Last month it read
Markit's "flash" composite PMI, a weighted average of its
manufacturing and services indexes, hit 61.1 in June, also a record
high, versus 58.4 in May.
"Importantly, this is not just a rebound from the weather-related
disruptions to business seen earlier in the year," said Chris
Williamson, chief economist at Markit.
"Companies are reporting strong demand for goods and services,
linked to growing confidence among households and business
customers, setting the scene for further robust economic growth as
we move into the second half of the year."
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He said growth in excess of 3.0 percent for the second quarter
"would not be a surprise."
(Reporting by Rodrigo Campos, Editing by Chizu Nomiyama)
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