ISM Services Index Improves

The U.S. economy’s service sector improved last month, showing the smallest level of contraction in nine months, the Institute for Supply Management said Monday.

ISM’s monthly services index rose to a reading of 47 in June, from 44 in May, the group said in its monthly report.

Figures of more than 50 indicate expansion, while below that shows contraction. The reading bested economists’ forecasts of a 46 reading, Bloomberg reported.

The index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.