US services firms expanded at solid but slower pace in May
The Institute for Supply Management, a trade group of purchasing managers, said Monday that its services index slipped last month to 56.9 from 57.5 in April.
Sales and new orders grew more slowly, while a measure of employment showed companies stepped up hiring.
Economists forecast growth will reach an annual pace of 3 percent, up from just 1.2 percent in the January-March quarter.
The report is likely to keep the Fed on track to lift interest rates at its meeting next week, Lee added.