According
to the latest Institute for Supply Management (ISM) data, its services
index rose to 58.6, beating consensus expectations of 55. This is the highest
reading since December 2005 and rose from 56 in July.
The
index shows the pace of growth in the U.S. services sector accelerated in
August at the fastest pace in almost eight years. A reading above 50 indicates
expansion in the sector.
The report likely indicates that economic
growth is strengthening in the second half of the year. The ISM manufacturing
report released Tuesday showed that sector growing at its fastest pace in over
two years.
The new orders and business
activity components hit their highest level since February 2011. New orders
rose to 60.5 from 57.7 and business activity hit 62.2 after scoring 60.4 in
July.
The key
employment index hit its highest in six months, up to 57 from 53.2.