ISM Services Index Improves, But Still Shows Contraction
The U.S. economy’s service sector contracted in January but at a lower rate than previously reported, the Institute for Supply Management said Tuesday.
ISM’s monthly services index rose to a reading of 42.9, from 40.1 in December, the group said in its monthly report Wednesday.
Figures of more than 50 indicate expansion, while below that shows contraction. Economists had forecast a decline to reading of 39, Bloomberg reported.
The index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.
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