Investing.com – The U.S. services sector grew more than expected in October, as the economy continues to expand.
The Institute of Supply Management (ISM) said its non-manufacturing purchasing manager’s index (PMI) increased to 60.1 in October from the prior month’s reading of 59.8.
Economists had expected the index to fall to 58.5.
October’s reading was the highest since the index debuted in 2008, said Anthony Nieves, Chair of the Institute for Supply Management.
“The non-manufacturing sector has reflected the third consecutive month of strong growth,” he said. “Respondent comments continue to indicate a positive outlook for business conditions, and the economy as we begin the fourth quarter.”
A reading above 50.0 on the index indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
The Non-Manufacturing Business Activity Index increased to 62.2 last month, compared to 61.3 in September.
The New Orders Index registered 62.8 in October, down from the reading of 63.0 in the previous month.
The Employment Index rose to 57.5 last month from September’s reading of 56.8.
The ISM Non-manufacturing Prices Index slumped to 62.7 from the prior month’s reading of 66.3.
Following the report, EUR/USD traded at 1.1626 compared to 1.1641 ahead of the release, while GBP/USD was at 1.3090from 1.3096. The US dollar index, which measures the greenback against a basket of six major currencies, was at 94.70 compared to 94.62 prior to the report.