U.S. Service-Industry Gauge Tops Forecasts on Jobs Boost

U.S. service industries expanded at the best pace since February amid a rebound in employment, a signal of labor-market strength before the government’s jobs report due Friday.

The non-manufacturing index rose to 56.9 in May, according to an Institute for Supply Management survey Wednesday that topped almost all economist estimates in Bloomberg’s survey. Three of four components advanced, led by the employment gauge rising the most in two years. New orders and business activity also improved, as 16 of 18 industries reported growth.