Economic activity in the U.S. service sector expanded in September for the first time in a year, according to the Institute for Supply Management's nonmanufacturing index released today. The index rose to a reading of 50.9 in September from 48.4 in August with readings of more than 50 indicate expansion.

MarketWatch reported the reading was higher than expected with economists anticipating a rise to 50.0.

The employment portion of the index still continued to contract in September, but at a slower rate than in August. The employment portion of the index rose to a reading of 44.3 in September from 43.5 in the previous month.