An index of the U.S. economy’s service sector declined in October, the Institute for Supply Management said Monday.
ISM’s monthly services index fell to a reading of 54.2 from 55.1 in September. Figures greater than 50 indicate expansion.
Economists had predicted the index would drop to 54.5, Bloomberg reported.
The index averaged 56.1 in the five years prior to the recession that began December 2007.
ISM’s services index measures nonmanufacturing components of the economy and the services sector — which includes transportation, retail sales and financial services and accounts for nearly two-thirds of the U.S. gross domestic product.