Activity in services sector shows big rebound in June

Another strong report on the economy in June.

Associated Press
July 06, 2020 - 9:21 am

FILE - In this Thursday, April 2, 2020 file photo, bagel shop manager Samantha Maddocks runs then lone shop still open in one walkway in the Pike Place Market in Seattle. Growth in the U.S. service sector slowed in March with a much bigger decline expected in coming months from all the shutdowns and job layoffs that have occurred because of efforts to contain the coronavirus. (AP Photo/Elaine Thompson, File)

WASHINGTON (AP) — Activity in the U.S. services sector rebounded strongly last month, but those gains are now being threatened by the resurgence of coronavirus cases in many parts of the country.

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The Institute for Supply Management said Monday that its service sector index rose to 57.1 in June, up from a reading of 45.4 in May. Any reading above 50 means that the service sector, where the majority of Americans work, is expanding.

Last week, the June ISM manufacturing index rebounded to a reading of 52.6 after registering big declines in the two previous months.

The reading for services index was better-than-expected but did still left concerns about what rising virus cases could do to efforts by restaurants, bars and other service businesses to stay open.

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