The pace of growth in the massive U.S. services sector accelerated in August, as a rebound in employment and exports more than offset a decline in new orders, according to an industry report Thursday that provided further evidence the economy may be improving. The Institute for Supply Management (ISM) said its index of non-manufacturing activity increased last month to 53.7 from a July reading of 52.6. Any reading above 50 reflects expansion in the sector, while a reading below 50 indicates contraction. The ISM employment gauge rose to its highest level since April, climbing to 53.8 from 49.3 in July, which was the lowest level in almost a year. The ISM exports measure rose to 52 in August, compared to 51 the previous month. However, the forward-looking new-orders index fell last month to 53.7 from 54.3 in July. Service companies employ about 90 percent of the U.S. workforce and include retail, construction, healthcare, and financial services. The service sector has expanded for 32 consecutive months.
