ISM Services Index Increases in July

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

ISM’s monthly services index rose to a reading of 54.3, from 53.8 in June, ISM said in its monthly report. Figures of more than 50 indicate expansion.

Economists had forecast a reading of 53, Bloomberg reported. The index averaged 53.7 from its inception in 1997 through June.

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.