U.S. Service Sector’s April Expansion Seen as Positive Economic Sign
- May 05, 2008
Washington, D.C.–After three months in a row of contraction, the U.S. service sector grew last month, the Institute for Supply Management said Monday. The Institute for Supply Management’s non-manufacturing composite index grew to 52 from 49.6. A reading over 50 indicates expansion.The service sector’s growth may be an indication that increasing costs and reduced demand are failing to cripple the economy, according to the Financial Times.Because services companies comprise roughly 70 percent of the economy, their capacity to weather economic troubles is key to the U.S. avoiding a recession.