ISM Services Index Shows Expansion in August

The U.S. economy’s service sector expanded in August following two straight months of contraction, the Institute for Supply Management said Thursday.

ISM’s monthly services index rose to a reading of 50.6, from 49.5 in July, the group said. Figures of more than 50 indicate expansion, while below that shows contraction.

The services index measures non-manufacturing components of the economy.

Economists had forecast an unchanged reading 8, 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.