(Bloomberg) -- The US service sector expanded in October at the fastest pace in over two years, fueled by a pickup in hiring.

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The Institute for Supply Management's non-manufacturing index increased to 56 in October, the highest since July 2022, data showed Tuesday. The figure topped all but one forecast in a Bloomberg survey of economists. Readings above 50 signal growth.

The group's gauges of new orders and business activity expanded at a solid rate, at 57.4 and 57.2 respectively, pointing to continued economic momentum at the start of the fourth quarter.

ISM's employment index climbed nearly five points to 53, the highest since August 2023. Further job gains, paired with low unemployment and limited layoffs, would support Americans' ability to keep spending in the months ahead.

The report also paints a more resilient labor market picture than offered by last week's monthly jobs report. US employers added just 12,000 jobs in October, a stepdown in hiring that was distorted by severe hurricanes and a major strike at Boeing Co.

American voters, who head to the ballot box today, have repeatedly listed the economy as a top concern in this year's presidential election.

Fourteen industries reported growth in October, led by retail trade, information, transportation and warehousing. Two reported declines.

The report also showed a gauge of supplier deliveries jumped to the highest level in more than two years, indicating slower deliveries. Steve Miller, chair of ISM's Services Business Survey Committee, told reporters the port strike and hurricanes likely impacted the figure.

Exports grew at a more moderate pace, while imports barely expanded.

A measure of prices paid by service providers for inputs indicated costs grew more slowly in the month. While the index is generally in line with pre-pandemic levels at 58.1, the data suggests consumer prices for services will continue to rise.

--With assistance from Alexandre Tanzi.

(Adds comment from ISM's Steve Miller in eighth paragraph.)