Services Sector Beginning To Expand

Washington, DC, Oct. 5, 2009--Institute for Supply Management said its index of the services industry rose to 50.9 in September, the highest since May 2008.

Economists expected the index would rise from 48.4 last month to the 50 level, the dividing line between expansion and contraction in the industry.

An improvement in the service industry is considered important to a recovery. It is dependent on consumer spending, which accounts for about 70 percent of all economic activity.