(Reuters) – U.S. service sector activity continued to recover in August for the second consecutive month amid rising orders and a strong job market, as pressures on the Supply and prices have eased, rekindling hopes that the economy has not slipped into recession despite lower production.
The Institute for Supply Management (ISM) monthly survey, released on Tuesday, shows the services index advanced last month to 56.9, the second consecutive rise after three months of decline. In July, the index stood at 56.7.
Economists polled by Reuters predicted an average figure for August of 54.9, the 50 mark separating growth and contraction in activity.
Last week, another survey showed that manufacturing activity in the United States remained stable in August at 52.8 while the consensus expected a slowdown to 52.0, a further sign that the economy is not not in recession.
The sub-index for new orders received by service companies jumped to 61.8 from 59.9 in July. That of employment recovered to 50.2 after contracting to 49.1 in July.
The sub-index of prices paid by businesses, for its part, fell to 71.5, the lowest level since January 2021, after 72.3 in July.
(Report Lindsay Dunsmuir; French version Claude Chendjou, edited by Sophie Louet)
Copyright © 2022 Thomson Reuters