News Column

Slowdown for US service sector

August 26, 2014

ACTIVITY in the services sector in the United States has slowed again, according to a report.

Markit said its preliminary Purchasing Managers Index dipped to 58.5 for August, from 60.8 in July.

Even though there was a cooling in activity a reading greater than 50 signals expansion, with businesses also confident about prospects in the remainder of the year.

Separate data showed sales of new family homes fell for a second straight month in July. But the S&P 500 stock market index shrugged off the mixed economic information to cross the 2,000 point threshold for the first time.

"The housing market continues to recover," said Sam Bullard, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.

"The fundamentals of strengthening job growth and hopefully stronger wage gains are still favourable."

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Source: Herald, The (Scotland)

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