Markets
US Services Sector Grows in September, Hits Highest Level in Nearly a Year
- US Services Sector Grows in September
Economic activity in the US services sector rose last month for the 80th consecutive month, according to the Institute for Supply Management report released on Wednesday.
The services sector jumped to 57.1 in September, more than 51.4 recorded in August. This is the highest in a year. Economists expected the 53, up from 51.4 in August.
The report revealed continued growth in the US services sector, and at a faster pace. This will strengthens the odds of the Fed’s raising rates later in the year.
A reading above 50 indicates expansion in the service sector and a reading below 50 indicates contraction.
Business activity also surged in September to 60.3 percent, 8.5 percentage higher than what was recorded in August. And the employment index rose by 6.5 percentage than the prior month.
Separately, U.S. factory orders rose just 0.2 percent in August, with the investment category up for the third month.