Growth in the U.S. services sector picked up in October, suggesting that the U.S. economy remains on a strong footing despite sluggishness in manufacturing and a global economic slowdown.
The Institute for Supply Management said Tuesday that its non-manufacturing index rose to 54.7 percent in October, up from 52.6 percent in September. That beat economists estimate and even topped the range of estimates, according to Econoday.
Any reading above 50 signals growth.
The new orders component rose 1.9 percentage points to 55.6 percent. This was bolstered entirely by domestic demand as exports were flat. That is a sign of ongoing strength of the U.S. consumer.
Thirteen of the 18 industries that make up the ISM’s measure of the services sector expanded in October, including the politically sensitive agricultural sector and ecnomically-potent construction. Transportation expanded. The tells for consumer discretionary spending–arts and entertainment, hospitality and food services–were also up.
Mining contracted, continuing its bumpy ride this year as low oil prices have discouraged new production.