The massive U.S. service sector grew in October at a quicker pace than the previous month and faster than analysts had expected. The Institute for Supply Management (ISM) said Friday its index of non-manufacturing business activity rose to 57.1 in October from Septembers' reading of 52.9, which was a three-year low. A reading above 50 signifies expansion in the sector, while a reading below 50 reflects contraction. October's figure represented the 43rd consecutive month of growth in the service sector, which includes industries such as banking, construction, retailing, and travel, and generates about two-thirds of U.S. economic activity. According to the report, the industries contributing most to the sector's growth were utilities, information, and retail trade. The industries reporting the biggest declines in activity were housing-related. A year ago, the ISM's service-sector index was at 60. But the U.S. economy has been slowing over the past several months, largely due to the slumping housing market.
