An index of the U.S. economy’s service sector increased in October, the Institute for Supply Management reported Nov. 5.
ISM’s monthly services index rose to a 55.4 reading from 54.4 in September. Figures of more than 50 indicate expansion, while figures below that show contraction.
The reading topped economists’ median forecast of a 54 reading, Bloomberg News reported.
ISM’s services index measures nonmanufacturing components of the economy. The services sector, which includes transportation, retail sales, financial services and other sectors, accounts for nearly 90% of the U.S. gross domestic product.
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