Service Sector Grows In Sept., 1st Time In Year

TALI ARBEL

NEW YORK (AP) — The U.S. service sector grew in September for the first time in 13 months, an encouraging sign for the fledgling economic recovery, although jobs remain scarce.

The Institute for Supply Management said Monday that its service index hit 50.9 last month, up from 48.4 in August. Analysts polled by Thomson Reuters had expected a reading of 50, the dividing line between growth and contraction.

The index, which tracks more than 80 percent of the country's economic activity, including hospitals, retailers, financial services companies and truckers, hadn't grown since August 2008.

The good news:

— The new orders index, an indicator of future activity, jumped to 54.2 in September from 49.9 a month before, the first growth reading in a year.

— Businesses' backlogs of orders grew for the first time in 14 months.

— Present business activity rose to 55.1 from 51.3 in August, growing for the second straight month after 10 straight contractions.