Economists Predict Sluggish Service Sector Growth Results
- Feb 04, 2008
Tempe, Ariz.–As home sales and construction declined, U.S. service industries most likely grew at the slowest pace in almost a year in January, economists forecast Monday.A Bloomberg News survey of economists said that the Tempe, Ariz.-based Institute for Supply Management index of non- manufacturing businesses–which comprise nearly 90 percent of the economy–will have fallen from 54.4 to 53, Bloomberg reports. ISM’s non-manufacturing report will be released on Tuesday.Another report may indicate the number of Americans purchasing pre-owned homes dropped for the second consecutive month in December. The housing decline is affecting builders, retailers, wholesalers and financial firms: Unemployment and decreased consumer spending are increasing the chance the U.S. could fall into a recession, economists said.