ISM Services Index Improves in August

The economy’s service sector showed improved activity in August, the Institute for Supply Management said Thursday.

ISM’s monthly services index improved to a 48.4 reading, from 46.4 in July, ISM said in its monthly report.

Figures of more than 50 indicate expansion, while below that shows contraction.

The reading topped economists’ forecasts of a 48 reading, Bloomberg reported.

ISM’s services index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.