The U.S. services sector is growing strong, providing additional evidence that the U.S. economy is recovering and might not need more stimulus funding. But that's contingent upon oil staying below $120 per barrel.
If you glanced at just one or two headlines from last week's reports on the U.S. economy, you might have concluded that things haven't changed that much. In fact, digging deeper reveals that business conditions are improving. Even the puzzling payroll report has hopeful indicators.
Services sector, like manufacturing, continues to hold up its part of the recovery bargain, as the sector expanded at the fastest pace in six months. The U.S. economy is still growing well below its potential, but investors, business executives, and job seekers alike can head in to 2011 knowing that the services sector will continue to add to GDP growth and jobs as the new year begins.
The U.S. service sector unexpectedly grew at a faster pace in October -- and if conditions in the giant sector continue to improve, that would likely lead to increased service sector hiring, as companies increase production to meet rising demand.
The long period of large monthly losses appears to be ending, as the private sector added 43,000 jobs in October, according to ADP's latest report. And September's job loss was greatly revised, from an initial estimate of 39,000 down to just 2,000.
The Dow surged nearly 200 points, while inflation fears propelled gold to another record close. The Institute for Supply Management said its services index rose to 53.2 last month from 51.5 in August. Economists had expected the measure to rise to 52.
The ISM services index grew at a better-than-expected pace in September, signaling continued economic growth -- and lowering the risk of a double-dip recession. Stock markets are reacting with a powerful surge.
U.S. services sector growth slowed in August and although the sector is still expanding, it will have to return to faster growth in order to help create the large number of jobs the U.S. economy needs to lower the unemployment rate to an acceptable level.
The Institute for Supply Management's July reading showed the vital U.S. services sector expanding faster in July, reducing the risk of a double-dip recession. July's data also point to an increase in hiring.
According to the Institute for Supply Management, service sector businesses grew for the fifth straight month in May, and added more jobs than they shed for the first time since early 2008. Meanwhile, manufacturing's upswing continues.
A key services sector index unexpectedly remained unchanged at 55.4 in April, with component measures for new orders and employment declining. Even so, the broader trend still shows improving services sector conditions, with increasing demand, but not robust conditions yet.
A key service sector index inched higher in January, hovering just above the level that indicates an economic expansion.
A key services sector index rebounded in December, a gain that provides more evidence of an ongoing economic expansion in the U.S.
