Business

Service sector shows steady growth

A server at an Atlanta restaurant. A gauge of hiring in the service industries rose 3.5 points to 56.2.

David Goldman/Associated Press/File

A server at an Atlanta restaurant. A gauge of hiring in the service industries rose 3.5 points to 56.2.

WASHINGTON — Activity at US service firms accelerated in October behind a jump in sales and more hiring, suggesting businesses largely shrugged off the partial government shutdown.

The Institute for Supply Management said Tuesday that its service-sector index rose to 55.4 in October, up from 54.4 in September. A reading above 50 indicates expansion.

Advertisement

The expansion at service firms echoes an ISM survey of manufacturers released last week, which showed the fastest growth at factories in 2½ years. Combined, the two reports suggest the private sector is showing steady growth and was not greatly affected by the shutdown.

The increase ‘‘supports other evidence suggesting that the wider economy shrugged off the government shutdown,’’ said Paul Dales, at Capital Economics.

Get Business Headlines in your inbox:
The Globe's latest business headlines delivered every morning, Monday through Friday.
Thank you for signing up! Sign up for more newsletters here

The service-sector report measures growth at companies that employ 90 percent of the workforce, including retail, construction, health care, and financial services.

A measure of their sales jumped 4.6 points last month to 59.7. And a gauge of hiring rose 3.5 points to 56.2. Measures of new orders and new export orders fell.

Anthony Nieves, chair of the ISM’s service-sector survey, noted that some companies in the hotel, restaurant, and retail industries complained about the shutdown. But those concerns ‘‘did not seem to translate into the numbers that we see here.’’

Associated Press

Loading comments...
You're reading  1 of 5 free articles.
Get UNLIMITED access for only 99¢ per week Subscribe Now >
You're reading1 of 5 free articles.Keep scrolling to see more articles recomended for you Subscribe now
We hope you've enjoyed your 5 free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.