The US services sector grew faster than expected in July, a report has indicated, offering hope for a key sector of the US economy.
The Institute of Supply Management said its non-manufacturing index rose to 54.3% from 53.8% in June.
Any number above 50% indicates growth in the sector that accounts for around two-thirds of US economic activity.
Posting gains for the seventh consecutive month, the non-manufacturing sector beat analysts estimates of a more modest expansion to 53 percent.
The ISM's Anthony Nieves said the survey showed 'continued growth in the non-manufacturing sector at a slightly faster rate'.
Meanwhile, the US economy created more private jobs than expected in July but hiring has not been rapid enough to ease a severe jobless rate, according to payrolls firm ADP.
Some 42,000 private-sector jobs were created following a revised June number of 19,000, ADP said ahead of a key government report Friday that is expected to show unemployment already at 9.5 percent ticking up.
Most economists had expected 25,000 private jobs to be established in July, the sixth consecutive monthly increase in hirings.
But ADP warned that the private job increases so far this year had averaged a modest 37,000, ‘with no evidence of acceleration’ as economic growth from a brutal recession threatens to stall.
