U.S. Service Industries Expand at Faster Rate Than Forecast

U.S. service industries expanded in May at a faster pace than forecast on stronger orders and sales, while a gauge of materials prices continued to advance, a survey from the Institute for Supply Management showed Tuesday.

The index remains close to the January reading of 59.9, which was the highest since August 2005, signaling solid expansion in sectors that account for about 90 percent of the economy. The figures are consistent with a report last week that showed faster growth at manufacturers.