ISM Services Index Expands

The U.S. economy’s service showed expansion last month, the Institute for Supply Management said Monday.

ISM’s monthly services index improved to a reading of 52, from 49.6 the previous month, the group said. The index hit a record low of 44.6 in January.

The services index measures non-manufacturing components of the economy. Figures of more than 50 indicate expansion, while below that level shows contraction.

Analysts had expected the index to fall to 49.1, Bloomberg reported.

The services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.