Economic activity in the US nonmanufacturing sector expanded in September at a faster rate than in August, according to the Institute for Supply Management’s nonmanufacturing index, released today. ISM’s nonmanufacturing index rose in September to a reading of 59.8 from August’s reading of 55.3.

September’s reading represents continued growth in the nonmanufacturing sector and at the fastest pace since August 2005 when the index registered 61.3%.

Any reading above 50% generally indicates improving conditions.

Additionally, the employment portion of the index increased 0.6 percentage point in September to 56.8 from the August reading of 56.2.

Bloomberg reports that, combined with ISM’s report earlier this week noting the fastest pace of manufacturing growth since May 2004, the report on services shows the economy is snapping back from any hurricane-related setback.