ISM Services Index Rises in July

An index of the U.S. economy’s service sector rose in July, the Institute for Supply Management reported Monday.

ISM’s monthly services index increased to a 56 reading from 52.2 in June. Figures of more than 50 indicate expansion, while figures below that show contraction.

Economists had forecast the index would improve to 53.1, Bloomberg News reported.

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