ISM Services Index Expands at Faster Pace

The U.S. economy’s service sector expanded at a faster pace in September, the Institute for Supply Management said Tuesday.

ISM’s monthly services index rose to a reading of 53.2, from 51.5 in August, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast a reading of 52, Bloomberg reported. The index averaged 53.3 during the six-year expansion that ended in 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.