ISM Services Index Slips But Shows Continued Expansion

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

ISM’s monthly services index decreased to a reading of 53, from 53.3 in August, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast the index would fall to 52.8, 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.