The Institute for Supply Management's US services index rose to a reading of 55.4 in August from 54.1 in July, compared with expectations for no change in a survey compiled by Bloomberg.
The ISM's reading is in line with the New York Federal Reserve and Dallas Federal Reserve services readings and the S&P Global measure that indicated expansion. The other regional Federal Reserve bank measures indicated contraction
There were increases in the readings for production, new orders, employment, inventories and prices.
The monthly national services reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.
An increase in the index further above 50 is considered a sign of a strong US services sector and would be a positive for service-sector stocks. Rising prices would normally be a negative for both stocks and bonds.