Trade group says service sector grows in May

By ALAN ZIBEL AP Business Writer

WASHINGTON (AP) - A private trade group says the U.S. service sector expanded in May for the fifth consecutive month, suggesting the economy will add more jobs and strengthen.

The Institute for Supply Management, a trade group of purchasing executives, says its service index was unchanged at 55.4 in May, the same level as April and March. A level above 50 indicates growth.

ISM also says its jobs measure increased, reversing 28 months of contraction.

The service sector is key for the economy as it accounts for about 80 percent of U.S. jobs excluding farmworkers. It includes jobs in such areas as health care, retail and financial services. The service sector has lagged the much smaller manufacturing sector in recovering from the recession.