ISM services-sector index rises to 53.3% in August
Sept. 6, 2011, 10:06 a.m. EDT
WASHINGTON (MarketWatch) - The Institute for Supply Management on Tuesday said its service-sector index rose to 53.3% in August from 52.7% in July. Economists surveyed by MarketWatch expected the services index to drop to 51.0%. While readings over 50% indicate more firms are expanding than contracting, the index is still sharply lower compared to its 2011 peak of 59.7% in February. In a positive sign, the new orders index rose 1.1 percentage points to 52.8% and the backlog of orders index climbed 3.5 percentage points to 47.5%. The employment index fell slightly, however, and the price index jumped 7.5 percentage points to a relatively high 64.2%. Ten of the 18 service sectors tracked by ISM reported growth. The U.S. service sector - fields such as health, finance and entertainment - accounts for three-fourths of all economic activity. It also employs about four of every five U.S. workers.
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