ISM Services Index Grows in October

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

ISM’s monthly services index rose to a reading of 54.3, from 53.2 in September, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast a reading of 53.5, Bloomberg reported. The index averaged 56.1 during the five-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.