A survey has shown that the US service sector grew for the fifth consecutive month in May, holding steady at the same pace of expansion for the last three months.
The Institute for Supply Management said its monthly survey found a 'mostly positive' outlook in the vast service sector, which accounts for about 70% of US economic activity.
The survey came as two separate reports showed signs that the country's labour market recovery was continuing.
The ISM said its non-manufacturing index stood at 55.4 in May, the same as in March and April. A reading above 50 indicates growth.
The components of the survey were mixed. The ISM index on business activity in the service sector rose for the sixth month in a row, to 61.1 from 60.3 in April. The index on new orders slipped 1.1 points to 57.1, while the prices index fell 4.1 points to 60.6, showing prices increases were slowing.
The employment index increased 0.9 percentage points to 50.4, the first growth after 28 consecutive months of contraction.
US job market recovery firmer - reports
Two separate sets of figures from the US have offered evidence that the country's labour market is improving.
The Labor Department said the number of US workers filing new claims for jobless benefits fell last week, while another report showed that private employers added jobs in May.
The came ahead of the government's closely watched employment report tomorrow. This is expected to show an increase of 513,000 in employment in May, which would mark five straight months of job gains.
Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 453,000, the Labor Department said. That was a touch above market expectations for 450,000.
Separately, private employers added 55,000 jobs in May after a 65,000 rise in April, an ADP Employer Services report showed. Though the ADP report was weaker than forecast, analysts said it offered evidence the labour market was getting better.
Although the economy has now grown for three straight quarters following the worst downturn since the 1930s and the recovery is broadening, stubbornly high unemployment is eroding President Barack Obama's popularity.
While other indicators support views the labour market recovery is firming, claims for jobless benefits remain above levels usually associated with sustainable employment growth.
The number of people still receiving benefits after an initial week of aid unexpectedly rose 31,000 to 4.67 million in the week ended May 22, the highest since early April, the Labor Department said. The level was above market expectations for 4.6 million.
