NEW YORK (AP) -- The nation's service economy expanded at a faster-than-expected clip in June, a research group said Thursday, suggesting soaring gas prices and inflation aren't dampening strength in industries such as banking, retail and travel.
The Institute for Supply Management, based in Tempe, Ariz., said its index of business activity in the non-manufacturing sector registered 60.7. The reading was higher than May's reading of 59.7 and Wall Street's expectation of 58.1.
A reading above 50 indicates expansion, while one below indicates contraction.
Separately, the Labor Department reported the number of newly laid off people signing up for jobless benefits went up last week. The level of claims, though slightly higher than economists were expecting, was still in a range that pointed to a sturdy job market.
