US Services Activity Expands at Fastest Pace in Eight Months (3)

US services activity expanded in October at the fastest pace in eight months on a swift upturn in the growth of new orders.

The Institute for Supply Management’s index of services rose 2.4 points last month to 52.4, the group said Wednesday. Readings above 50 indicate expansion in the largest part of the economy, and the latest figure exceeded all projections in a Bloomberg survey of economists.

The orders index jumped 5.8 points to a one-year high of 56.2. The business activity index, which parallels the ISM’s factory output gauge, swung back into expansion territory having advanced 4.4 points to ...