After reporting a slight contraction in U.S. service sector activity in the previous month, the Institute for Supply Management released a report on Thursday showing the service sector returned to growth in the month of June.
The ISM said its services PMI rose to 50.8 in June from 49.9 in May, with a reading above 50 indicating growth.
The uptick by the headline index partly reflected a turnaround by new orders, as the new orders index surged to 51.3 in June from 46.4 in May.
The business activity index also returned to expansion territory, jumping to 54.2 in June from the "unchanged" reading of 50.0 in May.
Meanwhile, the ISM said the employment index slumped to 47.2 in June from 50.7 in May, returning to contraction territory for the third time in the last four months.
The prices index also slid to 67.5 in June from 68.7 in May, although the elevated reading still indicates notable price growth.