US services sector accelerates in August

[alp227]

Source: Financial Times

The US services sector expanded unexpectedly in August, curbing three straight months of slower growth.

The Institute for Supply Management reported on Tuesday that its non-manufacturing index increased to 53.3 in August from 52.7 in July, better than the drop to 51 analysts had expected.

A survey reading above 50 signals expansion in service industries such as retail, healthcare, construction and finance, which make up more than two-thirds of gross domestic product – a signal that the US economy may not yet be headed for recession.

New orders ticked upward to 52.8 from 51.7 in July and supplier deliveries increased to 53 from 50.5. Overall prices paid for services increased to 64.2 from 56.6.

Read more: http://www.ft.com/intl/cms/s/0/0eb029c0-d892-11e0-8f0a-00144feabdc0.html

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[ixion]

1. "a signal that the US economy may not yet be headed for recession"

Utter rubbish.

[Yo_Mama]

2. Backlog of orders still contracting at 47.5

Until that corrects, I think there is little reason for optimism. With inventory sentiment too high, employment (still growing) is likely to go negative in a few months.

Link to actual report:
http://www.ism.ws/ISMReport/NonMfgROB.cfm

[zalinda]

3. Back to school bump. n/t