Service sector boomed in August, while factory orders fell more than expected in July

• The service sector boomed in August, while factory orders sank more than expected a month earlier, according to two reports released Thursday.
• The Institute of Supply Management's measure of the non-manufacturing sector for August came in at 58.5, blowing away expectations for a reading of 56.8 by a survey of Thomson Reuters analysts.
• Factory orders for July falling 0.8 percent, greater than the 0.6 percent decline expected, the Commerce Department said.

The service sector boomed in August, while factory orders sank more than expected a month earlier, according to two reports released Thursday.

The Institute of Supply Management's measure of the non-manufacturing sector for August came in at 58.5, blowing away expectations for a reading of 56.8 by a survey of Thomson Reuters analysts and following  the 55.7 reading reported in the prior month.

A reading above 50 indicates expansion in the service sector, while a reading below 50 signals contraction.

"Logistics, tariffs and employment resources continue to have an impact on many of the respective industries," the institute said in a statement. "Overall, the respondents remain positive about business conditions and the economy."

A separate report from the Commerce Department showed factory orders for July falling 0.8 percent, greater than the 0.6 percent decline expected by a survey of Thomson Reuters analysts and following an increase of 0.7 percent a month earlier.