A report has shown that the US service sector was still shrinking last month but at a slower pace. Activity was at its highest since September 2008, when Lehman Brothers' collapse exacerbated the global financial crisis.
The Institute for Supply Management said its measure of the service sector rose to 47 last month from 44 in May. This was above most economists' forecasts, but below the 50 mark which separates growth from contraction.
The services sector represents about 80% of US economic activity, including businesses such as banks, airlines, hotels and restaurants.
Both manufacturing and service sector reports show signs that the 18-month-old US recession, the most protracted in decades, may soon end.
The ISM service sector report's business activity index jumped within a hair of expansion territory, to 49.8 from 42.4 in May. The new orders index rose to 48.6 in June from 44.4 in May.
The ISM report showed jobs in the services sector contracted, but at a slower pace, with the employment index rising to 43.4 in June from 39 in May.
