ISM Services Index Shows Continued Expansion

An index of the U.S. economy’s service sector declined slightly in October but still showed expansion, the Institute for Supply Management said Thursday.

ISM’s monthly services index was little changed at 52.9, after a reading of 53 in September, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast the index would rise to 53.5, 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.