The US services sector grew in September for the first time in a year, a survey by purchasing managers showed today.
The Institute of Supply Management said its non-manufacturing index rose to 50.9% from 48.4% in August. (Any number above 50% indicates growth.)
Services makes up the lion's share of US economic activity and employment, and is therefore critical to recovery from the long recession.
The ISM index had declined for 11 consecutive months.
Among the sub-indexes, the business activity index increased 3.8 percentage points to 55.1% and the new orders index rose 4.3 points to 54.2%.
The employment index indicated ongoing cuts but not as heavy as in prior months, rising 0.8 percentage point to 44.3%.
The ISM said the overall economic outlook remains clouded: 'Even with the overall month-over-month growth reflected in the report this month, respondents' comments vary by industry and remain mixed about business conditions and the overall economy.'
