Financial data firm Markit said its "flash"
services Purchasing Managers Index hit 58.4 in May compared with
April's final reading of 55.0.
A reading above 50 signals expansion in economic activity.
The services sector added employees at the fastest rate since
January, with the employment subindex at 53.1, up from 51.2 last
month. New business growth for the services sector was at its
fastest since February 2011.
Markit's "flash" composite PMI, a weighted average of its
manufacturing and services indexes, hit 58.6 in May versus a
final reading of 55.6 in April, marking the fastest rate of
private sector output growth since April 2010.
"May's flash services PMI survey is a further signal that the US
economy has regained momentum through the second quarter of the
year," said Tim Moore, senior economist at Markit.
He said the survey should help alleviate concerns that the first
quarter slowdown reflected underlying sluggishness in the U.S.
The government non-farm payrolls report is due June 6 and is
expected to show 215,000 new jobs were created in May, according
to a Reuters poll.
(Reporting by Sam Forgione, Editing by Chizu Nomiyama)
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