World Economy

US Services Sector Accelerates to Seven-Month High

The services sector expanded at its strongest pace since February, with the Institute for Supply Management's index climbing to 55.4, surpassing economist expectations. The 1.3-point gain signals sustained momentum in the American economy's largest segment. Manufacturing activity remains in expansion territory but has decelerated. Susan Spence, chair of the Institute for Supply Management, noted warning signs despite continued sector growth. Energy cost pressures are weighing on business confidence as companies face rising operational expenses.