The U.S. services sector rebounded in October after hitting a three-year low in September.
The ISM non-manufacturing index rose 2.1 percentage points to 54.7 as respondents remained “concerned about tariffs, labor resources and the geopolitical climate,” according to the Institute for Supply Management. A reading above 50 signals the sector is growing.
Business activity, new orders and employment all showed improvement while prices fell.
The services sector makes up about two-thirds of the U.S. economy.
The upbeat report on the services sector comes days after a separate report showed America’s manufacturing sector remained in contraction last month. ISM manufacturing rose 0.5 percentage points to 48.3, ending a six-month streak of worsening numbers.