Somehow this seems to have been lost in translation yesterday>
The beloved & much 'touted' services sector indicator was 'supposed' to be the little engine that could..?
NEW YORK -- An index of U.S. service industries, which make up the largest share of the economy, declined in February from an all-time high as the pace of orders slowed.
The Institute for Supply Management said Wednesday that its non-manufacturing index dropped to 60.8 from 65.7 in January. Economists had expected a reading of 63.0, but a reading higher than 50 indicates expansion.
The services sector includes everything from restaurants and hotels to banks and airlines. It accounts for about 85 percent of the U.S. economy, the world's largest at $11.3 trillion last year, and almost the same percent of the 130.2 million jobs.
"The one area of concern is the employment index, which moderated in the month. That suggests continued subdued job growth," said Sal Guatieri, senior economist at BMO Financial Group.
The survey's employment index slipped to 52.7 from 53.4 in January, suggesting an improving but still murky labor picture. Growth in new orders also slipped, to 60.3 from 64.9.
"If job growth fails to pick up from the current languid pace, [consumer] consumption could slow more than we currently expect," Neal Soss, chief economist at Credit Suisse First Boston, said in a report to clients.
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The numbers out Friday will be telling.. |
