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Growth in U.S. Service Industries Is Strongest Since 2005


America’s service industries expanded in October at the fastest rate since August 2005, indicating the biggest part of the economy is gathering strength, a survey from the Institute for Supply Management showed Friday.

The unexpected acceleration in the ISM gauge shows momentum was building at the start of the fourth quarter for the industries that account for almost 90 percent of the economy and include sectors such as utilities, retailing, health care, and construction. The pickup stands in contrast to manufacturing, which grew at a slightly slower -- albeit still robust -- rate as reported by the Tempe, Arizona-based ISM earlier this week.

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