Service Sector Grows, Job Losses Moderate

[Purveyor]

Source: Associated Press

The economy's service sector grew slightly in January, while the pace of job losses slowed, signaling a recovery still struggling to gain strength.

The Institute for Supply Management said its service sector index rose to 50.5 last month from a downwardly revised 49.8 in December. Economists polled by Thomson Reuters had expected a higher level of 51. Still, it was the index's strongest reading since May 2008.

Any reading above 50 signals growth. That threshold was broken in September for the first time in 13 months. The service sector's recovery has been bumpy since, shrinking in November and December.

"Outside the factory sector, the economy is hardly growing, largely because of continued weakness in construction and lackluster retail activity," said Sal Guatieri of BMO Capital Markets in a note to investors. He said that a still-strapped consumer suggested the recovery "remains at risk" as government programs supporting the housing market end this spring.

On Monday, ISM said its manufacturing index jumped to 58.4 in January — its strongest point since 2004 — from 54.9 in December.



Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/02/03/national/a071254S85.DTL

[Kolesar]

1. Wow. This is great news.

ISM said its manufacturing index jumped to 58.4 in January — its strongest point since 2004

[Rapier09]

2. Bit by bit,the dawn breaks

Looks like we might not be entering the new Dark age after all.

[totodeinhere]

3. Not so fast.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4255181