The US economy's service sector grew a little faster in June but the pace remained below average for the past year, the Institute for Supply Management reported Monday.
The ISM purchasing managers index rose to 56.0 from 55.7 in May, helped by modest gains in business activity and new orders and a rise in order backlogs. But hiring and export order growth slowed.
Fifteen of 18 industry sectors polled by ISM reported growth, while three -- mining, which includes the oil sector, construction, and the "other services" category -- said activity fell.
"The majority of respondents' comments are positive about business conditions and the economy," the ISM said.
Retailers and recreation businesses reported strong activity as the summer commenced, while avian flu's impact on poultry farms was said to be hurting some parts of the agriculture sector and raising costs for food service businesses.