The U.S. service sector expanded in September for the ninth consecutive month. Even with the growth being consistent, it has yet to impact the high unemployment rate.
The Institute for Supply Management announced today that its service-sector index rose last month to 53.2 from 51.5 in August. The rate peaked at 55.4 in March and maintained that level in April and May, but has been a bit erratic since then. A reading above 50 signals growth.
The service industry employs about 83% of workers in the private sector. It has been hampered, to some extent, by weak consumer spending which has not allowed any true momentum to be achieved since the recession. Economists say Tuesday's reading was better than expected, but not enough to change their outlook of high unemployment and slow job growth for the rest of the year.
