US service sector picks up in August

The Non-Manufacturing Index jumped to 58.6 % last month from 56 % in July

 

Growth in the US non-manufacturing sector showed significant improvement in August as compared to previous months, a widely recognised private survey has revealed.

 

The Non-Manufacturing Index (NMI), which measures activity in the US service sector, jumped to 58.6 % last month from 56 % in July, the Institute for Supply Management (ISM) said Thursday in its monthly survey, reports Xinhua.

 

The NMI survey covers all sectors outside of manufacturing. A reading above 50 % indicates expansion of the service sector. The August reading is the highest since January 2008 when the figure was initially compiled.

 

The readings indicate new orders, a signal of future business, rose by 2.8 percentage points to 60.5 % in August, while the survey's employment component advanced 3.8 percentage points to 57 %.

 

A total number of 16 industries reported growth last month, including construction and retail trade, while two other industries including mining reported contraction.

 

The NMI is closely watched because the service sector accounts for about 90 % of the US workforce, and is a key indicator for the overall health of the economic recovery.

 

The Non-Manufacturing Index (NMI), which measures activity in the US service sector, jumped to 58.6 % last month from 56 % in July, the Institute for Supply Management (ISM) said Thursday in its monthly survey, reports Xinhua.

 

The NMI survey covers all sectors outside of manufacturing. A reading above 50 % indicates expansion of the service sector. The August reading is the highest since January 2008 when the figure was initially compiled.

 

The readings indicate new orders, a signal of future business, rose by 2.8 percentage points to 60.5 % in August, while the survey's employment component advanced 3.8 percentage points to 57 %.

 

A total number of 16 industries reported growth last month, including construction and retail trade, while two other industries including mining reported contraction.

 

The NMI is closely watched because the service sector accounts for about 90 % of the US workforce, and is a key indicator for the overall health of the economic recovery.