Us service providers expanded faster than expected in September, thanks to accelerated business activity and continued growth in new orders.
The non-manufacturing index rose to 61.9 in September from 61.7 in the previous month, according to data released by the Institute for supply Management on Tuesday. Economists surveyed by Bloomberg had a median estimate of 59.9.
The report shows that concerns about the epidemic remain, but to some extent, as Americans spend more on eating out and traveling. The ISM index of non-manufacturing enterprises rose to 62.3 from a six-month low.
At the same time, recruitment difficulties and ongoing logistics challenges lead to inventory depletion. An inventory indicator fell last month to its lowest level in more than a year, with an increase in outstanding orders.
ISM's service sector employment indicator shows hiring growth slowed slightly in September. Friday's non-farm payrolls report is expected to show that non-farm payrolls rose by nearly 490000 in the month.
The index of new orders for ISM was basically unchanged at 63.5, while the price paid by service providers in the United States was higher.