Job gains, cheaper petrol fuel service sector growth

Washington

SERVICE industries unexpectedly expanded at a faster pace in February, encouraging companies that make up the biggest part of the US economy to take on more workers.

The Institute for Supply Management's (ISM) non-manufacturing index increased to 56.9 from the prior month's 56.7, the Tempe, Arizona-based group said on Wednesday. A gauge above 50 shows expansion.

Persistent employment gains and cheaper petrol are spurring household purchasing power and driving sales at service providers.

Growth in the industries that account for almost 90 per cent of the world's largest economy are a source of support for the expansion as American factories contend with struggling overseas markets…