Service industries in the US, the largest share of the economy, apparently stabilized in September after contracting for almost a year, economists said in advance of upcoming reports.

The Institute for Supply Management's index of non- manufacturing businesses, which reflects almost 90 percent of the economy, rose to 50, according to the median of 64 forecasts in a Bloomberg News survey ahead of figures to be released today. Fifty is the dividing line between expansion and contraction.

The emerging recovery in manufacturing and housing spurred by government measures such as the "cash for clunkers" program and a tax credit for first-time homebuyers started spreading to the broader economy. Nonetheless, last week's jobs report showing that payroll cuts accelerated in September is a reminder that gains in sales might not be sustained as incentives expire.