ISM Services Index Slips Into Contraction

The U.S. economy’s service sector declined in October, the Institute for Supply Management said Wednesday.

ISM’s monthly services index fell to a reading of 44.4, from 50.2 in September, the group said in its monthly report.

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 a decline to reading of 47, 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.