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.