US services sector sees first growth in a year: ISM

The US services sector grew in September for the first time in a year, according to a survey by purchasing managers released Monday.

The Institute of Supply Management said its nonmanufacturing index rose to 50.9 percent from 48.4 percent in August. Any figure above 50 percent indicates growth. The services sector makes up the majority of US economic activity and employment, and is therefore critical to recovery from the long recession.

The ISM index had declined for 11 consecutive months.

Among the sub-indexes, the business activity index increased 3.8 percentage points to 55.1 percent and the new orders index rose 4.3 points to 54.2 percent.

The employment index indicated ongoing cuts but not as heavy as in prior months, rising 0.8 percentage point to 44.3 percent.

The ISM said the overall economic outlook remains clouded: “Even with the overall month-over-month growth reflected in the report this month, respondents’ comments vary by industry and remain mixed about business conditions and the overall economy.”