A surge in activity across the US services sector in July fuelled by spending on new homes put the economy on track for a strong second half of 2014, according to a business survey.
Businesses recorded growth rates only slightly below the previous month's record as the US continued to rebound from freezing weather in the spring that sent the economy's recovery into reverse.
Meanwhile, analysts also said a fall in service sector activity growth in
The US economy suffered in the spring after the country was blanketed in freezing snow, closing factories and cutting transport links. The bounce was rapid and revealed all major sectors recovered most of the lost output.
Policymakers at the Federal Reserve have hinted at an early rate rise should the momentum continue into the latter half of the year, but appear to be vindicated in their warnings that it is unlikely while the recovery remains bumpy.
A reading above 50 indicates growth while a fall to 50 shows the sector stagnated in July.
Services, which account for about 46% of GDP and roughly half of all jobs in the country, have been one of the few bright spots in
Some economists blamed a slowdown in the housing market for the weak reading.
A business survey warned that the US's annualised GDP growth rate of the second quarter was unlikely to
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