ISM Services Index Improves

The U.S. economy’s service sector grew in March at the fastest pace since May 2006, the Institute for Supply Management said Monday.

ISM’s monthly services index rose to a 55.4 reading, from 53 in February, ISM said in its monthly report.

Figures of more than 50 indicate expansion, while below that shows contraction. Economists had forecast an increase to a 54 reading, Bloomberg reported.

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.