Service Economy Growth Slows in October

The services sector of the U.S. economy continued to show growth in October, but did so at a slower pace, the Institute for Supply Management reported Tuesday.

The services sector, of which trucking is a part, is the largest contributor to the country’s gross domestic product.

The ISM’s index for financial, retail, construction and other non-manufacturing businesses fell slightly to 53.1 in October from the 53.9 it posted the previous month.

The index has been above 50 – the figure in ISM reports that signals the end of expansion and the beginning of contraction – since February.

Observers told Bloomberg News that they expected the services economy to continue to expand throughout the fourth quarter, even if the rate of growth slows from the pace set in the third quarter.

A survey of economists conducted before the release of the report reached a consensus prediction of 52, making the report’s performance better than expected.

The report came just a day before the Federal Reserve Open Market Committee is schedule to meet to discuss cutting interest rates to help spur the economy.

Bloomberg cited several Fed watchers who anticipate an interest rate cut of 25 basis points to 1.5%. Currently rates are at a 40-year low of 1.75%.

By cutting interest rates, the Fed hopes in inject more cash into the economy and boost spending.