Nation service economy expanded unexpectedly in April
Sunday, January 6, 2008 | | |NEW YORK - data showing an unexpected expansion in the services sector in April raised hopes that the U.S. economy will be spared a steep decline, even though many observers believe he is already in a mild recession.
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Some analysts saw the report, coupled with Friday's better than expected, the loss of many jobs, a sign that the economy could along confusion, or more or a free fall.
"I see nothing that indicates that the activity is strong, I see nothing that indicates that it is very low. We rolled onto the zero line, "said Dan Meckstroth, chief economist at the Manufacturers Alliance, a trade group.
Others warned on Monday that the services sector report by the Institute of Supply Management May be an aberration because it deviates from data showing weakness in employment, sales of autos and chain store sales.
The trade group's index of service sector showed a better-than-expected reading of 52 for April, against 49.6 in March. Wall Street economists polled by Thomson Financial / IFR had expected a reading of 49.3.
The index was below 50 for the previous three months. A reading above 50 indicates the sector is more and more, while reading below 50 indicates contraction.
Citigroup Inc. economist Steven Wieting said he took the reading with a grain of salt, saying that the services report put the group "is much more limited history" that his long and important manufacturing index.
"Some industries that are presented in the" improve "the column was the construction and real estate," said Wieting. "I'm sure we'll see one day. I would like confirmation. "
Nevertheless, the data matched expectations that the recession is shallow.
Twelve reported growth industries, including real estate, agriculture, wholesale trade, public administration and education. The six who said the contraction included transportation, hotels and healthcare.
The services sector represents nearly 80 percent of the country's economy. The services index fell sharply in January to 44.6, its first decline below 50 since March 2003 and was below 50 in February and March.
The Institute for Supply Management's recent reading of the manufacturing sector contracted in April, stalled near its lowest level in five years.
A Berkshire Hathaway Inc. annual meeting Saturday, the company billionaire Warren Buffett president recalled that the current economy meets its definition of a recession: When most people and businesses are not as though they were three , Six or nine months.
"I would say that we are clearly in a recession," said Warren Buffett.
Stocks, which traded lower Monday when services sector reading was released, fell more than oil has exceeded $ 120 a barrel. The Dow Jones Industrial Average fell 88.66, or 0.68 percent, to 12969.54. The Standard & Poor's 500 fell by 6.41 and 1407, 49 Nasdaq composite index fell 12.87 to 2464.12.
ADVERTISING
Some analysts saw the report, coupled with Friday's better than expected, the loss of many jobs, a sign that the economy could along confusion, or more or a free fall.
"I see nothing that indicates that the activity is strong, I see nothing that indicates that it is very low. We rolled onto the zero line, "said Dan Meckstroth, chief economist at the Manufacturers Alliance, a trade group.
Others warned on Monday that the services sector report by the Institute of Supply Management May be an aberration because it deviates from data showing weakness in employment, sales of autos and chain store sales.
The trade group's index of service sector showed a better-than-expected reading of 52 for April, against 49.6 in March. Wall Street economists polled by Thomson Financial / IFR had expected a reading of 49.3.
The index was below 50 for the previous three months. A reading above 50 indicates the sector is more and more, while reading below 50 indicates contraction.
Citigroup Inc. economist Steven Wieting said he took the reading with a grain of salt, saying that the services report put the group "is much more limited history" that his long and important manufacturing index.
"Some industries that are presented in the" improve "the column was the construction and real estate," said Wieting. "I'm sure we'll see one day. I would like confirmation. "
Nevertheless, the data matched expectations that the recession is shallow.
Twelve reported growth industries, including real estate, agriculture, wholesale trade, public administration and education. The six who said the contraction included transportation, hotels and healthcare.
The services sector represents nearly 80 percent of the country's economy. The services index fell sharply in January to 44.6, its first decline below 50 since March 2003 and was below 50 in February and March.
The Institute for Supply Management's recent reading of the manufacturing sector contracted in April, stalled near its lowest level in five years.
A Berkshire Hathaway Inc. annual meeting Saturday, the company billionaire Warren Buffett president recalled that the current economy meets its definition of a recession: When most people and businesses are not as though they were three , Six or nine months.
"I would say that we are clearly in a recession," said Warren Buffett.
Stocks, which traded lower Monday when services sector reading was released, fell more than oil has exceeded $ 120 a barrel. The Dow Jones Industrial Average fell 88.66, or 0.68 percent, to 12969.54. The Standard & Poor's 500 fell by 6.41 and 1407, 49 Nasdaq composite index fell 12.87 to 2464.12.
