Services index rises again, pointing to US recovery

The U.S. services sector continues to display "green shoots," signs of modest improvement. This bodes well for the U.S. economy.

The Institute for Supply Management's Non-Manufacturing Index, also known as the services index, rose to 47.0 in June from 44.0 in May, the ISM announced Monday. Readings below 50 indicate a contraction; above 50, an expansion. Economists surveyed by Bloomberg News had expected the services index to total 46.7 in June.

What's more, the index's closely watched business activity component also rose for the second consecutive month, jumping 7.4 points to 49.8 in June from 42.4 in May.