U.S. Service Sector Growth Expanded in June

U.S. service-sector activity picked up in June, suggesting steady growth for a key pillar of the economy.

The Institute for Supply Management's nonmanufacturing purchasing managers index rose to 56.5 in June from 52.9 in May. That was the highest reading since November.

Economists surveyed by The Wall Street Journal had expected the index would rise to 53.6.

Key components of the index also gained ground. New orders registered at 59.9, up from 54.2 in May. Employment grew to 52.7 from May's 49.7.

The ISM doesn't disclose the date its survey closes, so it isn't clear if the latest report fully captures uncertainty in global markets generated by the United Kingdom's vote to leave the European Union.

A separate ISM survey released Friday showed that almost one-third of service-industry businesses thought their firm would be negatively or slightly negatively affected by the Brexit.

Write to Jeffrey Sparshott at jeffrey.sparshott@wsj.com