The services industry in the United States unexpectedly expanded in April 2008, the Institute for Supply Management announced Monday.

The ISM's non-manufacturing index rose to 52 in April 2008 from 49.6 in March 2008. The services index had declined in the three months before April 2008.

Economists surveyed by Bloomberg News had expected the April 2008 survey to fall to 49.3. Readings below 50 indicate a contraction.

Conflicting economic data

Economist David H. Wang said Monday the services sector report adds another "counter conventional wisdom" data point to the current U.S. economic landscape. "When you add the services number with last week's rise in April [2008] factory orders, you have a complex economic picture right now," Wang said. "On the one hand, some economists will point to the housing slump, which is a legitimate head wind. On the other hand, others will point to services and factory indicators that say the economy is not as weak as many had thought it would be. It's a conflicted, muddled economic picture right now."

In the ISM non-manufacturing survey for April 2008, the business activity indexed decreased 1.3 percentage points to 50.9%, new orders decreased 0.1 percentage point to 50.1%, and the employment index increased 3.9 percentage points to 50.8%, the ISM announced. Meanwhile, the prices index increased 1.3 percentage points to 72.1% in April 2008, indicating a faster rate in price increases than in March 2008. Further, 12 non-manufacturing industries reported growth in April 2008.

The non-manufacturing ISM index surveys about 400 companies in 60 sectors in the United States, including agriculture, mining, and construction. Economists, business executives, investors/traders and others follow the business activity index because, like the manufacturing index, it provides a snapshot of how various, value-added U.S. sectors are performing.