ISM Services Index Rises in August

The U.S. economy’s service sector expanded in August, the Institute for Supply Management said Tuesday.

ISM’s monthly services index rose to a reading of 53.3, from 52.7 in July, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast the index would fall to 51, Bloomberg reported.

The index averaged 56.1 in the five years prior to the recession that began December 2007.

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.