Services sector grows at fastest pace ever in September

Finance news

The U.S. services sector expanded last month at its fastest pace on record, according to data released Wednesday by the Institute for Supply Management.

The ISM non-manufacturing index rose to 61.6 last month. That is the highest level since the index was created in 2008. Economists polled by Refinitiv expected the index to hit 58 in September. The index jumped from 58.5 in August.

“The non-manufacturing sector has had two consecutive months of strong growth since the ‘cooling off’ in July. Overall, respondents remain positive about business conditions and the current and future economy,” said Anthony Nieves, ISM chair, in a statement. However, “concerns remain about capacity, logistics and the uncertainty with global trade.”

U.S. equities rose to session highs following the data release, with the Dow Jones Industrial Average reaching an all-time high.

The data release came after ADP and Moody’s Analytics reported better-than-expected payrolls creation for September. The two firms said earlier on Wednesday private companies added 230,000 payrolls last month. Economists polled by Refinitiv had forecast a gain of 185,000.

ISM also reported earlier this week, however, a slowdown manufacturing growth for September. The ISM manufacturing index slipped last month to 59.8 from 61.3 in August, which was the highest since 2004.