Investing.com – The U.S. services sector expanded to its highest reading since August 2005, beating expectations as the economy expands.
The Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) increased to 59.8 in September from the prior month’s reading of 55.3.
Economists had expected the index to raise higher to 55.5.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
“The non-manufacturing sector has reflected strong growth in the month of September despite the impact on the supply chain from the recent hurricanes,” said Anthony Nieves, chair of the Institute for Supply Management, which publishes the report.
The Non-Manufacturing Business Activity Index increased to 61.3 last month, compared to 57.5 in August.
The New Orders Index registered 63.0 in September, six points higher than the reading of 57.1 in the previous month.
The Employment Index rose to 56.8 last month from August’s reading of 56.2.
The ISM Non-manufacturing Prices Index jumped to 66.3 from the prior month’s reading of 57.9.
Following the report, EUR/USD traded at 1.1755 compared to 1.1765 ahead of the release, while GBP/USD was at 1.3270 from 1.3272.
Stocks remained mixed, with the S&P 500 down 0.05%, the NASDAQ Composite falling 0.13% and the Dow up 0.05%.