Service Sector Expands In February
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The U.S. service sector accelerated to its fastest pace in February since the economic recession began in December 2007, but jobs remained scarce.
The Institute for Supply Management said Wednesday that the index measuring the activity in the service industry increased to 53 last month from 50.5 in January, as any reading above 50 signifies growth. Economists had expected a slower pace of 51 for February.
The ISM’s measure of employment improved to 48.6 last month, the 26th straight month of job loss, but was the highest level since lat April.
The service sector is critical to the stability of the economic recovery as it accounts for the majority of jobs in the U.S. and has seen slower improvement due to layoffs and tight credit weighs on consumers. Excluding farmworkers, the service sector accounts for 80 percent of jobs in the U.S.
Despite the harsh weather, the ISM said that both business activity and new orders both grew in February, while consumers stayed conservative on fears over slumping wages and unemployment.
The business activity index increased to 54.8 last month from 52.5 in January, while new orders improved slightly to 55 from 54.7. The prices paid index dropped to 60.4 in February from 61.2 in the prior month.
The ISM reported that nine of the 18 industries were growing, led by entertainment, information and transportation.
The Institute for Supply Management said Wednesday that the index measuring the activity in the service industry increased to 53 last month from 50.5 in January, as any reading above 50 signifies growth. Economists had expected a slower pace of 51 for February.
The ISM’s measure of employment improved to 48.6 last month, the 26th straight month of job loss, but was the highest level since lat April.
The service sector is critical to the stability of the economic recovery as it accounts for the majority of jobs in the U.S. and has seen slower improvement due to layoffs and tight credit weighs on consumers. Excluding farmworkers, the service sector accounts for 80 percent of jobs in the U.S.
Despite the harsh weather, the ISM said that both business activity and new orders both grew in February, while consumers stayed conservative on fears over slumping wages and unemployment.
The business activity index increased to 54.8 last month from 52.5 in January, while new orders improved slightly to 55 from 54.7. The prices paid index dropped to 60.4 in February from 61.2 in the prior month.
The ISM reported that nine of the 18 industries were growing, led by entertainment, information and transportation.
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