The Institute for Supply Management said its services sector index rose to 54.6 last month from 52.8 in April. The reading came in just above economists' forecasts for 54.0, according to a Reuters survey. The bounce came after April's reading fell to the lowest level since August 2010.

2) New hiring from US employers was far less than expected as high energy prices and Japan's quake effect dampened new hiring. Jobless rate rose to 9.1 percent, Nonfarm payrolls increased 54,000 last month, the weakest reading since September, the Labor Department said on Friday.

Private employment rose just 83,000, the least since last June, while government payrolls dropped 29,000. Economists had expected payrolls to rise 150,000 and private hiring to increase 175,000 in May.

The government revised employment figures for March and April to show 39,000 fewer jobs created than previously estimated.