U.S. ISM Non-Manufacturing Index Rose to 65 in August
U.S. ISM Non-Manufacturing Index Rose to 65 in August
Sept. 6 (Bloomberg) -- Growth at U.S. service companies rose unexpectedly in August, suggesting the economy was strong even as energy prices rose before Hurricane Katrina struck.
The Institute for Supply Management's measure of financial services, retail trade and other non- manufacturing businesses rose to 65 from 60.5 in July. A reading above 50 indicates expansion.
Demand in industries such as housing construction bolstered services even as auto sales slowed and gas prices pinched sales at retailers. The outlook for consumer spending worsened after fuel prices surged to records in the aftermath of Hurricane Katrina, prompting some economists to cut their forecasts for third-quarter growth.
``It's a number that's still showing healthy growth in services before Katrina,'' said Dean Maki, chief U.S. economist at Barclays Capital Inc. in New York, before the report. ``We have to expect a disruption to economic activity this month, and the main question is how long that proves to be.''
To contact the reporter on this story: Joe Richter in Washington Jrichter1@bloomberg.net.
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