The Institute for Supply Management released its October report on the state of the services industry, which found that service-based businesses, like restaurants and retailers, grew at the fastest pace in more than two years.
ISM’s services index reached 56.0% in October, up from 54.9% in September. Wall Street analysts predicted the October index would reach 53.7%, so the actual reading was stronger than expected. Anything over 50% is considered positive for the economy.
The Dow Jones Industrial Average rose about 0.2% in the 30 minutes following the report. It was trading at 42,117.29, up about 0.8% for the day.