Activity in services sector shows big rebound in June

FILE - In this Nov. 4, 2019 file photo, barista Porter Hahn makes an iced coffee drink for a customer in a coffee shop in Seattle. U.S. services companies grew at a faster pace in February 2020 than the previous month, an indication that the economy is still expanding, despite growing concerns about global coronavirus outbreak. The Institute for Supply Management said Wednesday, March 4, 2020 that its service-sector index rose to 57.3 from 55.5 in January. (AP Photo/Elaine Thompson, File)

WASHINGTON — Activity in the U.S. services sector rebounded strongly last month, but those gains are now being threatened by the resurgence of coronavirus cases in many parts of the country.

The Institute for Supply Management said Monday that its service sector index rose to 57.1 in June, up from a reading of 45.4 in May. Any reading above 50 means that the service sector, where the majority of Americans work, is expanding.

Last week, the June ISM manufacturing index rebounded to a reading of 52.6 after registering big declines in the two previous months.

The reading for services index was better-than-expected but did still left concerns about what rising virus cases could do to efforts by restaurants, bars and other service businesses to stay open.

Martin Crutsinger, The Associated Press