The upbeat reports prompted the Atlanta Federal Reserve to raise its second-quarter gross domestic product estimate to a 2.9% annualized rate from a 2.6% pace. The economy grew at a 1.1% rate in the first quarter.
The survey's measure of new orders received by private businesses jumped to 54.3 this month, the highest reading since last May, from 51.9 in April. The services sector drove the increase, keeping services inflation elevated. Price pressures at factories eased. The survey's measure of prices paid by businesses for inputs slipped to 58.5 from 61.2 in April.
Businesses also increased headcount, with companies reporting that vacancies were being more easily filled.
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