The Institute for Supply Management said on Thursday that the non-manufacturing PMI rose to 54.9 points last month, hitting the highest level since February 2023, from 51.5 points in August.
PMI data above 50 points indicates growth in the services sector, which represents more than two-thirds of the economy.
The institute sees readings above 49 points as an indication of macroeconomic growth.
Economists in a Reuters survey expected the purchasing managers index for the services sector to rise to 51.7 points.
An Institute for Supply Management survey said the new orders index rose to 59.4 points from 53 in August, also recording the highest level since February 2023.
On the other hand, the Institute for Supply Management’s index of service sector jobs decreased in… US to 48.1 from 50.2 in August, consistent with a slowing labor market.
Much of the slowdown in job growth is due to falling demand after interest rates rose significantly in 2022 and 2023.
