Thread: US Service Industry Growth Falls

U.S. Economy: Services Expand Less Than Forecast (Update1)

By Courtney Schlisserman

Jan. 6 (Bloomberg) -- Service industries in the U.S. barely expanded in December, underscoring Federal Reserve forecasts that the economic recovery will be slow to develop.

The Institute for Supply Management’s index of non- manufacturing businesses that make up almost 90 percent of the economy rose to 50.1 from 48.7 in November, according to the Tempe, Arizona-based group. Fifty is the dividing line between expansion and contraction. Other reports today showed job cuts are diminishing.

Services from retailing to transportation are lagging behind the rebound in manufacturing as consumer demand is restrained by tight credit and 23 months of job losses. Economists surveyed last month projected the pace of growth will keep unemployment above 10 percent through the first half of this year, making it more likely central bankers will keep interest rates low for an “extended period.â€

Lose employment and one has to get rid of maid, gardener and chauffer. Why is the loss of service jobs any surprise?

the service industry is loaded with Illegal Aliens

And the SEIU is pushing for legalization for all those illegals who have lost their jobs and won't be paying union dues. Why would anyone in their right mind pay dues when they are out on the streets begging for day labor? And the SEIU is delusional, as always, when it does not take into account the collapsing economy, but bullies employers that are squeaking by to pay illegals fair wages, wages which they are not allowed to earn in this country.