US Service Sector Index Hits Highest Level Since It Was Created in 2008

The Institute for Supply Management (ISM) reported that its service index rose to 58.6 percent in August, 2.6 percentage points higher than the 56 percent registered in July. This marks the 44th consecutive month of growth and the highest reading since its inception in January 2008.A reading above 50 indicates the sector is expanding. The Non-Manufacturing Business Activity Index increased to 62.2 percent, which is 1.8 percentage points higher than the 60.4 percent reported in July, reflecting growth for the 49th consecutive month.

The Institute of Supply Management reported, “The 16 non-manufacturing industries reporting growth in August — listed in order — are: Educational Services; Management of Companies & Support Services; Information; Accommodation & Food Services; Public Administration; Construction; Finance & Insurance; Professional, Scientific & Technical Services; Retail Trade; Utilities; Transportation & Warehousing; Real Estate, Rental & Leasing; Agriculture, Forestry, Fishing & Hunting; Other Services; Wholesale Trade; and Health Care & Social Assistance. The two industries reporting contraction in August are: Mining; and Arts, Entertainment & Recreation.”

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