Economic activity in the US nonmanufacturing sector expanded in June at a slightly faster pace than in May, according to the Institute for Supply Management’s nonmanufacturing index, released today. ISM’s nonmanufacturing index edged up in June to a reading of 57.4 from May’s reading of 56.9 and represents continued growth in the nonmanufacturing sector at a slightly faster rate.

However, the employment portion of the index fell to a reading of 55.8 in June, down two percentage points from 57.8 in May.

Any reading above 50% generally indicates improving conditions.

MarketWatch reports the index topped its economists’ forecast, which called for a reading of 56.5%. One manager in the professional, scientific and technical services field said there are “still job growth issues with mismatch in available labor pool and jobs available.”

Separately, the US four-week moving average of initial claims for unemployment insurance edged up to 243,000 last week, up 750 from the previous week’s unrevised average, according to seasonally adjusted numbers released today by the US Department of Labor.

The four-week moving average decreases the volatility of the weekly numbers. Total initial claims for unemployment insurance for the week ended July 1 rose to 248,000, up 4,000 from the previous week’s unrevised level.

CNBC reports the number of Americans filing for unemployment benefits unexpectedly rose for a third straight week last week, likely as some automakers closed assembly plants for the annual summer retooling. Economists polled by Reuters had forecast first-time applications for jobless benefits falling to 243,000 in the latest week.