Rising costs due to higher energy prices remain a concern for the U.S. services sector, even the sector added jobs in June,

The Institute for Supply Management said today its nonmanufacturing index rose to 62.2 in June, better than forecasts for a reading of 58.2 and up from 58.5 in May. A reading above 50 indicates expansion in the sector.

The services sector accounts for about 80% of the U.S. economy,

The employment component of the index rose to 57.4 percent for June, the third-highest ever, from May’s 53.4.

However, the prices-paid index, rose to 59.9 from 57.9 in May, “indicating that recent increases in energy are being felt by nonmanufacturing industries,” said Ralph Kauffman, head of the ISM’s survey committee.