The pace of growth in the U.S. service sector rose in August as inflationary pressures eased, according to a report released today by the Institute for Supply Management.

The ISM’ nonmanufacturign index rose to 57 in August from 54.8 in July. The median forecast of Wall Street economists was for an increase to 55.

A number above 50 indicates growth in the sector.

The services sector makes up about 80 percent of U.S. economy activity, including businesses such as restaurants, hotels, hair salons, banks and airlines.

The survey’s prices-paid index fell to 72.4 in August from 74.8 in July, while the jobs component fell to 51.4 from 54.5, and new orders fell to 52.1 from 55.6.