ISM Services Index Slows Expansion

The U.S. economy’s service sector slowed its expansion last month, the Institute for Supply Management said Wednesday.

ISM’s monthly services index slipped to a 50.6 reading, from 50.9 in September, ISM said in its monthly report. September’s had been the first services index expansion in 13 months.

Figures of more than 50 indicate expansion, while below that shows contraction. Economists had forecast an increase to a 51.5 reading, Bloomberg reported.

The new orders index, an indicator of future activity, rose to 55.6, the highest level on two years, from 54.2.

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.