ISM Services Index Improves in October

An index of the U.S. economy’s service sector increased in October, the Institute for Supply Management reported Nov. 5.

ISM’s monthly services index rose to a 55.4 reading from 54.4 in September. Figures of more than 50 indicate expansion, while figures below that show contraction.

The reading topped economists’ median forecast of a 54 reading, Bloomberg News reported.

ISM’s services index measures nonmanufacturing components of the economy. The services sector, which includes transportation, retail sales, financial services and other sectors, accounts for nearly 90% of the U.S. gross domestic product.