Aug. 4 (Bloomberg) -- Service industries expanded in July at a faster pace than forecast, reflecting an increase in employment that eases the risk U.S. economic growth will slacken in the second half of the year.

Record-low mortgage rates may prevent housing from slumping much more, while July’s rebound in stock prices, the first gain in three months and the biggest in a year, will probably help underpin consumer confidence. Coming on the heels of ISM’s manufacturing data this week that showed the factory rebound cooled, the report diminishes the risk the recovery will fade.

Nearly a third of U.S. companies are back in hiring mode, a survey by an influential business group showed Monday, though the labor market revival is expected to be tempered by the weak economy.

The latest National Association for Business Economics survey of 84 companies found that 31% took on additional employees in the second quarter, up from 22% in the previous survey. The latest figure is the highest since the second quarter of 2007, on the eve of the financial crisis.