US service sector picks up modestly in May NEW YORK - The pace of growth in the vast U.S. services sector picked up a tad in May as a gauge of new orders improved, according to an industry report released on Tuesday. The Institute for Supply Management said its services index edged up to 53.7 from 53.5 in April, a touch above economists' forecasts for it to hold steady at April's level. A reading above 50 indicates expansion in the sector. The forward-looking new orders component rose to 55.5 from 53.5, but the employment index fell to its lowest level since November 2011 at 50.8 from 54.2.