US service industries’ expansion in April fastest in 8 months

Service industries expanded in April at the fastest pace in eight months, a sign the biggest part of the US economy will bolster growth this quarter.

The Institute for Supply Management’s non-manufacturing index rose to 55.2, higher than projected, from the prior month’s 53.1, the Tempe, Arizona-based group’s report showed yesterday. Readings above 50 indicate expansion.

The gain, combined with the strongest pace of manufacturing in four months, indicates growth is rebounding after a weak first quarter. Employers boosted payrolls in April by the most in two years and the jobless rate dropped to the lowest level since 2008, laying the ground for a pickup in consumer spending that will benefit companies such as United Parcel Service.