The massive US service sector, which accounts for most of the economy, picked up steam in August, according to a survey by the Institute for Supply Management.
The ISM index of non-manufacturing activity rose to 53.3% last month, up from 52.7% in July, the firm said in a report. The slightly faster pace marked a rebound from two months of declines in a row. The increase surprised most analysts who had forecast another decrease amid the sluggish economy.
It was the 21st month of expansion in the sector in a row - an ISM reading above the 50% level indicates growth - but the August number remained well below the post-recession peak of 59.7 in February.
Mining, information, and retail trade were the growth leaders among the 10 industries reporting increased activity. Five industries indicated contraction, with educational services the hardest hit.
"Respondents' comments remain mixed. There is a degree of uncertainty concerning business conditions for the balance of the year," ISM said.
