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WASHINGTON (AP) — Activity at U.S. service firms accelerated in October behind a jump in sales and more hiring, suggesting businesses largely shrugged off the partial government shutdown.

The Institute of Supply Management said Tuesday that its service-sector index rose to 55.4 in October, up from 54.4 in September. Any reading above 50 indicates expansion.

The expansion at service firms echoes an ISM survey of manufacturers released last week, which showed the fastest growth at factories in 2 1/2 years. Combined, the two reports suggest the private sector is showing steady growth and was not greatly affected by the shutdown.

The increase “supports other evidence suggesting that the wider economy shrugged off the government shutdown,” said Paul Dales, an economist at Capital Economics. “With the shutdown over, the index may rise further in November as any postponed activity takes place.”

The service-sector report measures growth at companies that employ 90 percent of the work force, including retail, construction, health care and financial services. A measure of their sales jumped 4.6 points last month to 59.7. And a gauge of hiring rose 3.5 points to 56.2. Measures of new orders and new export orders fell.



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