Service sector’s growth reflects talk of rebound

The U.S. service sector, which employs nearly 90 percent of the country’s work force, expanded for a 19th consecutive month in June, according to the latest reading from the Institute for Supply Management.

The ISM index for service companies, covering such industries as retail, health care, financial services and construction, dipped to 53.3 in June from 54.6 in May. Any reading above 50 indicates expansion.

The services index reached a five-year high in February but since that time has retreated as the economy has undergone a slowdown, reflecting the adverse effects of high gas prices on consumer spending. Economists believe growth will rebound in coming months.

Associated Press