The Institute for Supply Management (ISM) has reported that the US service sector expanded more than expected in February, as the service sector index came in at 55.1, only slightly down from January’s reading of 55.2.
A reading above 50 suggests expansion in the US service sector. The latest report suggests that this growth was driven by an increase in employment and new orders, which reached their highest levels in over a year.
The ISM Services Index is composed of 17 different industry sectors, including real estate, transportation, construction, and mining.
This news comes after a strong showing in the manufacturing sector, as reported earlier this week by the ISM’s Manufacturing Index, which rose to 60.8 in February from 58.7 in January.