Growth in the massive US services sector rose by more than expected in September, a key index has shown.
The Institute of Supply Management said its non-manufacturing index rose to 53.2, the ninth consecutive month of growth. Any figure above 50 indicates expansion in the key sector, which accounts for the bulk of overall US economic output.
Most analysts had expected the index to rise slightly to 51.8 from 51.5 in August.
'Respondents' comments continue to be mixed about business conditions, with a slight majority reflecting optimism,' said Anthony Nieves, head of the services survey committee.
The services sector is holding up better than manufacturing activity, a key driver of the US economy's recovery from the worst recession in decades. Last week the ISM reported its purchasing managers index (PMI) on economic activity in the manufacturing sector rose to 54.4 in September, the 14th consecutive month of expansion but a slowdown from 56.3 in August.
Still, the acceleration in services growth in September still remained weaker than the 55.4 average in the March-May period.
The latest ISM report signalled improvement in the jobs market, ahead of the government's highly anticipated September employment data on Friday. The sub-index on employment rose to 50.2, the third increase in the past five months and a sharp rebound from August's 48.2.
