The Purchasing Managers Index for non-manufacturing businesses, already well above the break-even point of 50, rose from 56 to 58.6, which indicates the pace of business expansion accelerated in the month.
New business orders expanded at a faster pace with the index rising from 57.7 to 60.5.
In August, export orders, which were in contraction in July, moved into positive territory with the index for foreign orders reaching 50.5, up from 49.5.
The index measuring the number of employees jumped from 53.2 to 57. The index measuring inventories also showed faster growth rising from 53.5 to 56.
For the second consecutive month, the institute said 16 of 18 service-oriented industries showed growth in the month. The sectors of educational services, management of companies, information, hospitality including food services, public administration, construction, finance and insurance, scientific services, retail, utilities, transportation and warehousing, real estate, agriculture and forestry, wholesale trade, healthcare and other all expanded, ISM said.
Mining and arts, entertainment and recreation contracted, ISM said.
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