The U.S. services sector expanded at a faster pace in August as the non-manufacturing business activity composite index was 59.6 in the month, compared to 58.7 in July, on a seasonally adjusted basis, the Institute for Supply Management reported Thursday.
Economists polled by Thomson Reuters had expected a 57.6 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index slipped to 57.7 from 60.9.
The employment index increased to 57.1 from 56.0.
The business activity/production index grew to 65.0 from 62.4, the new orders index was at 63.8, down from 64.9; backlog of orders rose to 54.5 from 53.0; new export orders slid to 52.5 from 53.0; inventories held at 51.0; inventory sentiment fell to 55.0 from 58.0; the supplier deliveries index rose to 52.5 from 51.5; and imports dropped to 51.0 from 54.5.
Members' general comments on business in the month included:
"General business conditions have improved." (Information)
"Local business, and thus lending activity, is picking up." (Finance & Insurance)
"Still incurring significant global challenges on pharmaceutical solution supply shortages." (Health Care & Social Assistance)
"Pricing on most food related items continue to go up monthly." (Accommodation & Food Services)
"Business is holding steady with orders increasing slightly. The rest of 2014 should show some slight growth. International orders have been slow to match U.S. growth but appear to be increasing slightly as well." (Professional, Scientific & Technical Services)
"The local economy continues to get stronger." (Public Administration)
"Year-over-year same store sales up approximately 4 percent resulting in continued store remodeling, new construction and upgrades." (Retail Trade)
"New orders, project business and backlog remain robust. Internal investment in capital remains positive." (Wholesale Trade)
