Service Sector Growth Picks Up Pace

Washington, DC, Oct. 5, 2010--Growth in the U.S. services sector accelerated last month more quickly than economists had expected and hiring also picked up, according to the Institute for Supply Management.

ISM said its services index rose to 53.2 in September from 51.5 in August. That was above the 52.0 median forecast of 74 economists surveyed by Reuters.

A reading above 50 indicates expansion.

The sector, which comprises mostly service sector firms, accounts for two-thirds or more of U.S. economic activity.

The report's employment component rose to 50.2 in September after having dipped into contraction at 48.2 in August. New orders rose to 54.9 from 52.4.