U.S. service industries expanded at a strong pace in August, overcoming concerns that turmoil in the financial market would hinder growth, Bloomberg News reported.

The Institute for Supply Management’s index of nonmanufacturing businesses held steady at 55.8 in August. Readings above 50 signify growth. Expansion in the service industries, which account for about 90 percent of the economy, suggest that the effects of a collapse in the subprime mortgage market and an increase in borrowing rates have been slow to spread beyond real estate. Economists had predicted the ISM index would fall to 54.5.

The gauge of new orders jumped to 57 from 52.8, the largest increase in 11 months. However, the measure of prices paid fell to 58.6 from 61.3, the lowest since February.

Though real estate remains the hardest-hit industry, ADP Employer Services said yesterday that U.S. companies added the fewest jobs in August since June 2003. The Institute for Supply Management said Tuesday that manufacturing in the United States expanded at the slowest pace in five months as companies reduced orders.