http://www.usatoday.com/story/money/business/2013/03/05/ism-services-index-february/1964369/
"The service sector if the economy grew in February at the fastest pace in a year, buoyed by higher sales and orders." The service sector increasing is very good for the economy because the service sector is the largest part of the consumption portion of our GDP. When more people are consuming goods and services in the largest portion, then there is going to be an influx of money and jobs into the economy. The government will not release the February employment report until Friday, but when they do, I believe that the unemployment rate will have decreased from the previous month because of this increase in the service sector.
"The service sector if the economy grew in February at the fastest pace in a year, buoyed by higher sales and orders." The service sector increasing is very good for the economy because the service sector is the largest part of the consumption portion of our GDP. When more people are consuming goods and services in the largest portion, then there is going to be an influx of money and jobs into the economy. The government will not release the February employment report until Friday, but when they do, I believe that the unemployment rate will have decreased from the previous month because of this increase in the service sector.
Yes, this most certainly seems to be a positive indicator for the US economy. This is because it suggests that Americans are willing to continue to spend money despite the fact that they have to pay higher taxes. This could also mean that consumer confidence increased a fair amount after major reduction, at the end of last year.
ReplyDeleteI also agree that this is a good sign for our economy. I also worry that even though unemployment is falling it is doing so by a minimal standard. I also worry that the fall in unemployment could be due to the growing number of discouraged workers and exiting the labor force. I guess we will have to wait for the February numbers to see if were actually improving.
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