Less Growth Prompts First U.S. Services Job Cuts Since 2014
Source: Bloomberg
Growth in U.S. service industries slowed for a fourth straight month in February, prompting the first job cuts in two years.
The Institute for Supply Management’s non-manufacturing index eased to 53.4 from 53.5 in January, the Tempe, Arizona-based group’s report showed Thursday. While readings above 50 signal expansion, the gauge has posted slower growth since November. The group’s employment measure dipped below the expansion threshold for the first time since February 2014.
Services industries, which range from construction to finance, account for the lion’s share of the economy, and a slowdown risks taking a bigger bite out of growth than the slump in manufacturing. Continued job growth and signs that the recovery remains on track despite market volatility will be needed to convince consumers to keep spending and provide a much-needed boost.
“We’re continuing on the path of growth, it just may be slowing ever so slightly,” said Anthony Nieves, chairman of the ISM non-manufacturing survey, said on a conference call with reporters after the release. “You don’t want to get overly concerned until you see a long trend and we start seeing contraction across these indexes.”
Read more: http://www.bloomberg.com/news/articles/2016-03-03/slower-growth-prompts-first-u-s-services-job-cuts-since-2014