Services Sector Picks Up At a Brisk Pace in August

The U.S. services sector expanded at a faster pace in August as the non-manufacturing business activity composite index was 53.3 in the month, up from 52.7 in July, on a seasonally adjusted basis, the Institute for Supply Management reported Tuesday.

Economists polled by Thomson Reuters had expected a 51.4 level.

An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.

The prices paid index, closely watched for signs of inflation, rose to 64.2 from 56.6.

The employment index decreased to 51.6 from 52.5.

The business activity-production index slid to 55.6 from 56.1, the new orders index rose to 52.8 from 51.7, the backlog of orders grew to 47.5 from 44.0, and new export orders jumped to 56.5 from 49.0.

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