Nonmanufacturing economic activity grew in August to a level that matched expectations by economists surveyed by Reuters.
The Institute for Supply Management's index registered 55.3 in August. This was a reversal from a decline in July, when the index hit 53.9.
"The non-manufacturing sector has rebounded from the prior month's cooling-off period," Anthony Nieves, chair of the ISM survey committee, said in a statement.
A reading above 50 for the index indicates expansion in the service sector, and a reading below 50 indicates contraction.
Fifteen of the 17 nonmanufacturing industries surveyed reported growth in July. Two industries — transportation and warehousing and agriculture, forestry, fishing and hunting — reported contractions.
The business activity index increased 1.6 percentage points in August from July, reflecting growth for a 97th consecutive month.
The new orders index also registered higher at 57.1 in August, 2 percentage points higher than the reading of 55.1 in July.
The employment index increased 2.6 percentage points in August to 56.2 percent, reversing declines seen in June and July.