Thursday, April 4, 2013

U.S. service sector growth slowed



The pace of growth in the services sector of the United States economy slowed in March, reaching the lowest level in seven months, as the number of new orders and employment cooled in the biggest part of the economy. According to the Institute for Supply Management's, its non-manufacturing index cooled to 54.4 from a one-year high of 56 in February. Data came slightly below analysts' expectations, which called for a 55.0 reading. Any reading above 50 indicates expansion and the March measure was in line with the gauge's average over the past year. Meantime, the index of manufacturing activity fell to 51.3 in March from 54.2 in February, indicating that the world's largest economy is continuing to expand albeit slower than expected.



"Non-manufacturing firms still seem cautiously optimistic," said Ryan Wang, an economist at HSBC Securities USA Inc. in New York, who projected a March reading of 54.5. "Employment signals are mixed."

Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee, said: "According to the NMI, 15 non-manufacturing industries reported growth in March. The majority of respondents' comments continue to be positive about business conditions," he added.

Thu, 04 Apr 2013 11:41:07 GMT
Source: Dukascopy Bank SA
Image Credit: loop_oh

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