Service sector surprisingly weak in January (ISM index plunges to 41.9% -- 2nd lowest on record)

[Roland99]

Source: MarketWatch

WASHINGTON (MarketWatch) -- The non-manufacturing side of the U.S. economy, which had been the firmest pillar of the economic expansion, buckled in January, data reported by the Institute for Supply Management showed Tuesday.

The ISM nonmanufacturing index fell to a reading of 41.9% last month, down from 54.4% in December. Read full report.

It was the largest one-month drop in the index history, coming in well below the 53.0% reading that had been expected by economists.

This marked the first reading below the 50% mark since March 2003, and the second-lowest reading ever. Readings below 50% indicate most firms are contracting.

Read more: http://www.marketwatch.com/news/story/us-ism-services-sector-index-plunges/story.aspx?guid=%7B9EBD8850%2D57D9%2D45F2%2DBC02%2DE40E3E828A57%7D

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But, hey, the economy has sound fundamentals...it's obviously the media fueling the problem.

[Robbien]

1. The the prices index is at 70.7

The report shows that jobs are going away, new orders are going away. But hey, prices for available goods and services are nicely increasing.

[Selatius]

2. The economy looks great if you undercount the unemployed and remove energy/food from inflation.

If I could somehow live without food or shelter, I'd be set for life. :sarcasm:

[pattmarty]

3. It"ll be interesting when All the economic reports are out for January.

[fascisthunter]

4. yuh... what a Surprise

It's not like people weren't fretting about this a few years ago!

[Roland99]

8. Ayup. But now we have fewer mfg jobs *and* fewer Mcjobs.

[hatrack]

5. "Surprising" . . . . Yeah, OK . . .

:eyes:

[ixion]

6. my thoughts exactly... "who could have foreseen?"

:eyes:

[Supersedeas]

7. nothing to see here -- feed them more Britney and lastest poll #'s

[Amerigo Vespucci]

9. Service sector contracted sharply in January

Source: MSNBC

NEW YORK - For the first time in almost five years, the nation’s services sector — including restaurants, travel, banking, construction and retail — contracted in January, stoking rising worries of a recession.

The Institute for Supply Management’s report, released Tuesday, shook the stock market while bond prices surged. The Dow Jones industrial average, the Standard & Poor’s 500 index and the Nasdaq composite index all fell.

“This is an absolute collapse of this index,” said Nigel Gault, chief U.S. economist at Global Insight.

The consensus among survey respondents was that the services sector, which accounts for about two-thirds of the economy, has “come to the end of a long-term period of growth,” said Anthony Nieves, chairman of the Institute for Supply Management’s non-manufacturing business survey committee.

Read more: http://www.msnbc.msn.com/id/23008910/

[Morereason]

10. This lovely economy. Upticks shallower and shallower and shorter and shorter

While downturns get deeper and longer. Moving us more and more toward semi-slave labor

[pattmarty]

11. That means the "jobs" at Wendy's & McDonald's will be getting scarce.

[Lone_Star_Dem]

12. Yep. We're entering into a state where that crappy McJob you could always fall back on...

...may no longer even be a sure thing.

As we chip away at our number of underemployed we'll be adding to our ranks of unemployed.