Investing.com - The rate of growth in the economy's service sector picked up in August, according to a report released on Thursday.
The Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 58.5 in August, from 55.7 the previous month.
Economists had forecast a reading of 57.0.
A reading above 50 for the index indicates expansion in the sector, and a reading below 50 signals contraction.
The Non-Manufacturing Business Activity Index increased to 60.7 last month, 4.2 points above July’s reading of 56.5.
Economists had forecast a gain to 56.9.
The New Orders Index registered 60.4 in August, 3.4 points higher than the reading of 57.0 in the previous month.
The Employment Index rose 0.6 point to 56.7 last month from July’s reading of 56.1
The Prices Index decreased 0.6 point to 62.8 in August from the prior month’s reading of 63.4.
“There was a strong rebound for the non-manufacturing sector in August after growth ‘cooled off’ in July,” ISM chair Anthony Nieves explained in the report.
While logistics, tariffs and employment resources continued to have an impact on many of the respective industries, Nieves said that, “overall, the respondents remain positive about business conditions and the economy.”