U.S. service sector surged in April

Data show a reverse after months of sluggish activity

WASHINGTON - The U.S. service sector expanded at a faster rate in April after hitting a four-year low in March, a trade group said Thursday, with concerns about energy costs persisting.

The Tempe, Ariz.-based Institute for Supply Management, an organization of corporate purchasing executives, said its index of business activity in the non-manufacturing sector registered 56 in April, up from 52.4 in March. Readings above 50 indicate expansion.

The index was above Wall Street’s expectation of 54, according to Briefing.com, and April represents the 49th consecutive month of growth in the non-manufacturing industries.