Economic activity in the US nonmanufacturing sector accelerated in June, according to the Institute for Supply Management’s nonmanufacturing index released today.

ISM’s nonmanufacturing index rose 0.5 percentage point in June to a reading of 59.1 from May’s reading of 58.6.

Readings above 50 generally indicate improving conditions.

However, the employment portion of the index fell in June to 53.6 from May’s reading of 54.1. Twelve industries reported increased employment, and three industries reported decreased employment.

Comments from respondents to the survey on which the index is based include: “More client awards, so need to hire more people,” and, “Employee retention is getting much more competitive.”