Services sector index signals expansion


The U.S. services sector, like its sister sector, manufacturing, continues to exhibit improvement -- something that bodes well for the U.S. economy.

The Institute for Supply Management's Non-Manufacturing Index, also known as the services index, rose to 50.9 percent in September from 48.4 percent in August, the ISM announced Monday. Readings above 50 indicate an expansion; below 50, a contraction. Economists surveyed by Bloomberg News had expected the services index to total 50.0 percent in September. The Index hit a low of 37.4 percent in November.

What's more, the index's closely watched business activity component also rose for the second consecutive month, jumping 3.8 points to 55.1 percent in September from 51.3 percent in August.