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ISM Services Index Jumps in January


2/3/2012 10:30:00 AM
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An index of the U.S. economy’s service sector rose in January at the fastest pace in nearly a year, the Institute for Supply Management said Friday.

ISM’s monthly services index jumped to a reading of 56.8, from 53 in December. Figures greater than 50 indicate expansion.

Economists had forecast the index would rise to 53.2, Bloomberg reported.

The index averaged 56.1 in the five years prior to the recession that began December 2007.

ISM’s services index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.

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