desertdispatch.com
 

Sep 4, 11:01 AM EDT

US services firms expand at fastest pace on record


Business Video

Latest Business News
Alibaba investors beware: History not on your side

United offers up to $100K if workers leave

Eurozone economic growth forecast cut

How the Dow Jones industrial average did Monday

Rates mixed at weekly US Treasury bill auction

Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
Drops in food, gas prices push UK inflation down

Russian ruble drops to historic low amid sanctions

World Bank: Palestinian economy to shrink in 2014

Economy at heart of confidence vote for French PM

Eurozone economic growth forecast cut

China's industrial output slows to 6.9 percent

US retail sales rise in August on auto sales

RBS would leave Scotland in case of independence

Economic forecast in much of world: Dim to gloomy

US industry pay hikes since recession, at a glance

Buy AP Photo Reprints
Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt
Related Stories
Video of lawmaker tirade resurfaces in House race

Fundamental problems plague Seattle megachurch

WASHINGTON (AP) -- U.S. services firms expanded in August at the fastest pace on record.

The Institute for Supply Management said Thursday that its services index rose to 59.6 last month from 58.7 in July. The August figure is the highest recorded since the measure was introduced in January 2008. Fifteen industries reported growth last month. Only mining and arts, entertainment and recreation contracted in August.

Hiring grew at services firms for a sixth straight month. Their export orders grew for a fifth straight month but at a slower pace than in July.

Jennifer Lee, senior economist at BMO Capital Markets, said the report suggests that economic growth remains healthy in the current July-September quarter after registering a robust 4.2 percent annual pace from April through June.

"The encouraging U.S. economic news continues to roll in, pointing to continued job creation and, at some point, higher wages and then, stronger consumer spending," Lee wrote in a research note.

The ISM is a trade group of purchasing managers. Its services survey covers businesses that employ 90 percent of the American workforce, including retail, construction, health care and financial services firms.

On Friday, the Labor Department will report on hiring and unemployment in August. Economists forecast that the economy generated 220,000 jobs. That would be the seventh straight month that job gains exceeded have 200,000, the longest such streak since 1997.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.