Summary Box: Service sector expands in May

AP News
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Posted: Jun 03, 2011 6:29 PM
Summary Box: Service sector expands in May

SERVICES GROW: The service sector, which employs 90 percent of the nation's work force, grew for an 18th straight month in May.

INDEX UP: The Institute for Supply Management's index tracking the health of service industries increased to 54.6 in May compared with 52.8 in April. While an increase, the May reading was below a five-year high of 59.7 in February.

OUTLOOK: Analysts believe that because of higher gas prices, consumers have cut back on spending and that has caused the slowdown in service sector growth.