The Institute for Supply Management released its non-manufacturing purchasing managers' index for the U.S. on Wednesday. The index climbed to 59.1 in October from 56.9 in September, beating expectations for a decrease to 56.5.
A reading above 50 indicates a growth in the service sector.
The increase was mainly driven by a rise in new orders sub-index. The ISM's new orders index increased to 62.0 in October from 56.7 in September.
The business activity/production index rose to 63.0 in October from 60.2 in September.
The ISM's employment index was up to 59.2 in October from 58.3 in September.
The prices index climbed to 49.1 in October from 48.4 in September.