Service industries in the U.S. contracted in April at a slower pace than forecast, signaling the economic slump is gradually abating. The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90 percent of the economy, rose to 43.7 from 40.8 the prior month, according to the Tempe, Arizona-based group. Readings below 50 signal contraction. Increases in consumer spending, rising confidence and stable home sales have added to signs the worst recession in at least half a century may end later this year. Even when it does arrive, an expansion is likely to be tempered by job losses, a continued lack of credit and falling home prices. “The economy is on a path to stabilize,” Aaron Smith, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “The oncoming fiscal support will prevent a renewed slide in consumer spending.” Still, “it’s not going to be a boom-like recovery,” he said. The index was projected to increase to 42.2, according to the median forecast in a Bloomberg News survey of 66 economists. Estimates ranged from 38 to 46.

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