NEW YORK – 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, compared to 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 was at 52.8, up from 51.7; backlog of orders rose to 47.5 from 44.0; new export orders rose to 56.5 from 49.0; inventories fell to 53.5 from 56.5; inventory sentiment fell to 56.0 from 59.5; the supplier deliveries index rose to 53.0 from 50.5; and imports increased to 53.5 from 47.5.
