According to Mining News Pro -The Non-Manufacturing Purchasing Managers` Index rose to a reading of 58.5% in August, up from July’s reading of 55.7%. The increase was a surprise to the markets, which expected the index to climb to 57%.

Readings above 50 are seen as a sign of economic growth – the farther an indicator is above or below 50, the greater or smaller the rate of change.

In an initial reaction to the latest ISM Non-Manufacturing index, gold declined, with December Comex gold futures last seen trading at $1,209.60, up 0.69% on the day. Earlier on Thursday, the yellow metal received a boost from softer U.S. dollar.

One of the most positive elements in the ISM report was improving business, with the business activity index ticking up to 60.7%, compared with July’s 56.5%.

Looking at other components of the ISM Non-Manufacturing PMI, the new orders index rose to 60.4% from July’s reading of 57%. At the same time, employment index was up at to 56.7%, compared to the previous reading of 56.1%. Economists keep a close eye on the latter number as a gauge into the employment situation in the country.

Inflation pressures rose for the 30th consecutive month, with the price index coming in at 62.8% in August.

After analyzing a mixed bag of data this morning, economists said they were still expecting a solid Q3 growth.

“The good news on goods from the ISM was also the good news on services, as the non-manufacturing ISM came in firmer than expected in August. All told, a mixed bag of news today, but nothing that will alter expectations for a decent Q3 growth rate (we are at 3.0%) and a Fed hike at the next FOMC,” said CIBC World Markets chief economist Avery Shenfeld.