ISM Services Index Shows Expansion for First Time in a Year

The U.S. economy’s service sector showed expansion in September for the first time in more than a year, the Institute for Supply Management said Monday.

ISM’s monthly services index rose to a 50.9 reading, from 48.4 in August, ISM said in its monthly report. It was the first expansion in 13 months.

Figures of more than 50 indicate expansion, while below that shows contraction. Economists had forecast a reading of 50, the Associated Press reported.

The new orders index, an indicator of future activity, jumped to 54.2 in September, the first growth reading in a year.

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.