The Institute for Supply Management(ISM), a trade group that services survey covering business like retail and financial companies, released a report on Wednesday, saying that its service-sector index reached its highest level in nearly a year, which indicates an improving condition.
According to the report released today, the nonmanufacturing index rose to 57.1 in September from the 51.4 in August, which was its highest level since October last year and was above analysts’ previous estimates of 53.
“It’s a rebound from the prior month,” said Anthony Nieves, the head of the ISM non-manufacturing survey. “We’ll have to see how it trends out. September has typically been a pivotal month for the non-manufacturing sector and it bodes well in terms of how we think the year will finish out.”
In the report, ISM also announced that the business activity index rose 60.3 from 51.8, and employment index increased from 50.7 to 57.2. With most numbers showing a positive trend, the concern that economy is slowing down is alleviated.
In addition, the U.S. Commerce Department said in a separate report that new orders for manufactured goods increased 0.2% in August, which was above the estimates of 0.1% rise. Core capital, which is an indicator for business confidence also increased 0.9%.