US service sector growth speeds up

The US non-manufacturing sector grew in July for the 43rd consecutive month and expanded at a quicker pace than the previous month, a survey said.

The Non-Manufacturing Index (NMI), which measures activity in the US service sector, edged up to 56.0 last month from 52.2 in June, the Institute for Supply Management (ISM) said Monday in its monthly survey.

NMI survey covers all sectors outside of manufacturing. A reading above 50 indicates expansion of the service sector, reported Xinhua.

The index showed that new orders, a signal of future business, rose to 57.7 in July from 50.8 in June, while the survey's employment component decreased to 53.2 in July from 54.7 in June, said the ISM.

A total number of 16 industries reported growth last month including construction and retail trade, while mining reported contraction.