Bloomberg: Service industries expanded in December at the fastest pace since May 2006, showing the U.S. economic recovery is picking up and broadening beyond manufacturing.
The Institute for Supply Management’s non-factory index, which covers about 90 percent of the economy, rose to 57.1, exceeding the median forecast of economists surveyed by Bloomberg News, from 55 in November. A reading greater than 50 signals growth. Another report today showed hiring accelerated.
Improving demand at FedEx Corp. and Carnival Corp. shows the expansion is extending to areas like retailing and recreation, putting the rebound from the worst recession since the 1930s on firmer footing. The gains may prompt more employers to increase payrolls, one of the missing ingredients that has concerned Federal Reserve policy makers.
…Stocks climbed as the reports bolstered optimism the economy is strengthening …. companies boosted payrolls in December by the most since records began in 2001. Employment increased by 297,000, almost three times the 100,000 median estimate of economists surveyed …. Employers last month also announced plans to cut 32,004 jobs, the fewest since June 2000…
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