Service Sector Grows Unexpectely in July

Washington, DC, Sept. 4, 2008–The Institute for Supply Managed said that the U.S. service sector grew unexpectedly in July for the first time in three months as new orders increased and inflation moderated.

ISM, a trade group of purchasing executives, said Thursday the services sector index rose to 50.6 in August from 49.2 in July. It beat economists’ prediction of a reading of 50.0.

A reading below 50 signals contraction, while a reading above 50 indicates growth.