Growth Steady in U.S. Service Sector

NEW YORK - The U.S. service economy expanded at the same pace in August as in July, surprising analysts who had been looking for slower growth.

The Institute for Supply Management said Thursday its index measuring change in the non-manufacturing sector registered 55.8 in August, the same as in July. That was higher than the reading of 54 analysts were expecting.

The index hit a 12-month high of 60.7 in June.

A reading above 50 indicates economic expansion and below 50 indicates contraction.

The services sector accounts for 80 percent of U.S. economic activity and spans diverse industries including restaurants, banking, construction, mining, agriculture …