Service Industries Set Year-High Pace For Growth

The service industry, which comprises roughly 90 percent of the U.S. economy, has experienced its highest rate of growth in the last year, reports indicate.

The Institute for Supply Management’s non-manufacturing index rose unexpectedly last month to 56, up from 55.2 in January. Any figure over 50 represents expansion in the field. Analysts speculate the figure will ease back slightly and settle at around 55.

Increased growth in the housing market has raised the demand for construction, contracting, real estate and mortgage-finance services. Accelerating service orders, along with a pickup in manufacturing reported last week, indicate that the economy’s fragile growth has been able to weather the storm circulating Capital Hill regarding the federal budget.