ISM Services Index Improves in May

An index of the U.S. economy’s service sector increased in May, the Institute for Supply Management reported Wednesday.

ISM’s monthly services index rose to a 53.7 reading from  53.1 in April. Figures of more than 50 indicate expansion, while below that show contraction.

Economists had forecast the index would improve to 53.1, Bloomberg News reported.

ISM’s services index measures nonmanufacturing 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.