US services growth hits 12-year record
Growth in the US services sector, a key driver of the American economy, hit a 12-year high last month in the wake of back-to-back hurricanes, a survey released Wednesday showed.
The monthly gains surpassed analyst expectations and marked 93 consecutive months of expansion, according to the Institute for Supply Management.
ISM's non-manufacturing index rose a strong 4.5 percentage points from August's level to reach 59.8 percent.
A reading above 50 percent indicates growth. Analysts had predicted that September's result would be the same as those from August.
The September reading was the highest since August of 2005, when the index hit 61.3 percent. Hurricane Katrina wrought destruction in New Orleans at the end of that month.
Analysts said Wednesday that rising chain store sales and deliveries in advance of the hurricanes had helped explain some of September's bounce.
The business activity index rose 3.8 points to 61.3 percent, the new orders index spiked by 5.9 points to 63 percent and the employment index nudged up 0.6 points to 58.6 percent.
According to the survey, 15 of 17 service industries reported growth, including retail, construction and financial services.
Meanwhile, the mining sector, as well as arts and entertainment, reported contraction.
The indices for supplier deliveries jumped 7.5 percent and prices showed an 8.4 percent gain.
Most industries did not report disruption from hurricanes Harvey and Irma, except for hospitality and food services, as well as professional, scientific and technical services.
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