Ahead Of The Bell: ISM Service Sector Index

NEW YORK (AP) — A trade group's measure of the health of the U.S. service sector likely rose for a second straight month in October as consumer spending ticks higher, a crucial ingredient for a strong rebound from the recession.

The Institute for Supply Management's service index likely edged up to 51.5, from 50.9 in September, according to analysts polled by Thomson Reuters.

Any reading above 50 signals growth in the service sector. That threshold was broken in September for the first time in 13 months. A reading of 51.5 would be the strongest since April 2008.

The ISM measure tracks more than 80 percent of the country's economic activity, including hospitals, retailers, financial services companies and truckers. The service sector is highly dependent on consumer spending, which powers about 70 percent of the economy.

The Commerce Department last week said consumer spending dropped 0.5 percent in September, the first decline in five months. Meanwhile, Americans' personal incomes, which power future spending, fell slightly. Wages and salaries also dipped.

October's retail sales for major chains are expected to be flat or rise up to 1 percent, according to the International Council of Shopping Centers-Goldman Sachs index.