U.S. services sector activity hit its highest level since December 2005 last month and factory orders surged in June, Reuters reported. The Institute for Supply Management said today that its services index rose to 58.7 from 56 in June, with new orders reaching their highest level since August 2005. A reading above 50 indicates expansion in the sector. In a separate report, the U.S. Commerce Department said orders for manufactured goods increased 1.1 percent after a 0.6 percent decline in May.