Activity in the U.S. service sector grew at a notably faster rate in the month of September, the Institute for Supply Management revealed in a report on Wednesday.
The ISM said its non-manufacturing index jumped to 59.8 in September from 55.3 in August, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 55.5.
With the much bigger than expected increase, the non-manufacturing index reached its highest level since hitting 61.3 in August of 2005.
"The non-manufacturing sector has reflected strong growth in the month of September despite the impact on the supply chain from the recent hurricanes," said Anthony Nieves, Chair of the Institute ISM Non-Manufacturing Business Survey Committee.
The report said the business activity index climbed to 61.3 in September from 57.5 in August, while the new orders index surged up to 63.0 from 57.1.
The employment index also inched up to 56.8 in September from 56.2 in August, indicating a modest acceleration in the pace of job growth in the service sector.
The ISM said the prices index also shot up to 66.3 in September from 57.9 in the previous month, reaching its highest level since February of 2012.
On Monday, the ISM released a separate report showing activity in the manufacturing sector unexpectedly grew at a faster rate in the month of September.
The purchasing managers index climbed to 60.8 in September from 58.8 in August, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to dip to 50.8.
by RTT Staff Writer
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