Business activity in the U.S. service sector increased to 60.6% in June, according to a report from the Institute of Supply Management released Thursday. That’s the highest monthly level since September 2000.
“Non-manufacturing Business Activity increased for the third consecutive month in June,” said Ralph Kauffman, chair of the Institute. New orders, order backlogs, employment, prices, and imports also increased in June, Kauffman said.
According to the ISM report, 15 industry groups grew in June, while no groups contracted and two reported no change from May.
Increased business activity in June was reported by 41% of members, compared to May’s 31%.
The Backlog of Orders Index rose by 0.5 percentage point to 51.5%.
The June New Orders Index increased from 54.7% in May to 57.5% in June.
June’s Prices Index is 51.4%, up from 49.6% in May.
In addition, Inventories decreased after rising for two months.