Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (52720)	6/5/2002 4:13:42 PM
From: stockman_scott	Respond to of 65232

Services Activity Highest Since Aug. 2000 By Eric Burroughs Wednesday June 5, 3:56 pm Eastern Time NEW YORK (Reuters) - A survey of services activity, which makes up bulk of the U.S. economy, showed on Wednesday that the sector grew at its fastest pace since Aug. 2000, reinforcing expectations for a moderate recovery from recession. The Institute for Supply Management, an industry trade group, said its monthly non-manufacturing index of activity in everything from entertainment to financial services rose in May to 60.1 from 55.3 in April, reaching the highest level since the economic downturn first began in late 2000. Analysts polled by Reuters had forecast a rise only to 55.9. A reading above 50 signals growth, while one below 50 suggests contraction. Economists cautioned that the headline index overstated some of the strength in the survey's other components and that the data reflected a moderate growth rate for the economy in the second quarter. "It's consistent with a decent growth rate in the economy," said Stephen Stanley, senior market economist at Greenwich Capital Markets in Greenwich, Connecticut. Stanley said he expects the U.S. economy's growth to slow from a 5.6 percent pace in the first quarter to about 3 percent in the second quarter. He's forecasting that a pickup in business investment will push up the growth rate to about 4 percent in the second half of the year. Earlier this week ISM's closely watched manufacturing index showed the sector growing in May at its fastest pace since February 2000, adding to recent evidence of a broadening U.S. recovery. U.S. stocks and the dollar received a lift on the stronger-than-expected data, while U.S. Treasuries briefly retreated. But even with the recent upbeat data, Federal Reserve officials remain cautious. On Tuesday Fed Chairman Alan Greenspan said the outlook had not materially changed since January and the economy was going through a "soft spot," suggesting the central bank is in no hurry to push up interest rates from four-decade lows. Economists and Fed officials are looking for signs of stronger business investment and consumer spending later in the year to ensure that the economy's rebound does not falter. Worries about consumers' willingness to keep buying big-ticket items were stoked earlier this week when automakers reported May sales fell 5.7 percent, much more than expected. NEW ORDERS UP, BUT NO HIRING ISM's new orders index rose to 56.8 in May from 56.4 in April, while the order backlog index posted its first growth in 17 months -- signaling rising demand for future services activity that could push the index even higher next month. While the employment index rose in May to 49.5 from 48.9 in April, it still indicated a 15th straight month of job losses. But the index moved closer to the 50 threshold that would signal job growth. "We need to see some decent employment growth. That makes Friday's employment data really important," said Stanley, referring to the U.S. Labor Department's May payrolls report. Economists polled by Reuters see the economy adding 58,000 jobs in May following April's gain of 43,000. But those figures are not strong enough to bring down the unemployment rate, which is seen rising to 6.1 percent from 6 percent. The prices paid index fell on the month to 55.5 from 59.5, indicating that prices are rising at a slower pace and soothing some worries about quickly building price pressures. ISM compiles its non-manufacturing diffusion index by surveying more than 370 purchasing executives in more than 62 different service industries once a month. Responses reflect the change in the current month compared with the previous month. The non-manufacturing ISM Report is seasonally adjusted for business activity, new orders, imports, and employment. ___________________ btw, Tim thanks for the comments...I agree that its important to celebrate people's lives when they have moved on from this world. regards, -Scott