Services Index Shows 2nd Month of Growth
NEW YORK (Reuters) - A key barometer of the vast U.S. services economy registered growth for a second straight month in
December, according to a report issued on Friday, helping to solidify optimism the American economy may have already seen
the worst of the current recession.
The Institute for Supply Management, or ISM, an industry trade group,
said its monthly non-manufacturing index, which measures the services
sector of the economy, surged to 54.2 in December from 51.3 in
November, beating forecasts of a 49.7 reading. The index hit a four-year
low of 40.6 after the Sept. 11 attacks.
A reading above 50 indicates growth in the services sector, which includes
everything from transportation to legal and financial services. ISM's
manufacturing index, which measures less than one-fifth of overall
economic activity, has been mired below 50 for the past 17 months but
showed a strong rebound in new orders in December, spurring recovery
hopes.
``Overall in December, non-manufacturing industries experienced a
second month of growth in business activity following the dramatic drop-off of activity in October,'' said Ralph Kauffman, chair
of ISM's non-manufacturing survey committee, in a statement.
ISM, formerly the National Association of Purchasing Management, compiles its diffusion index by surveying about 370
purchasing executives in more than 60 different service industries monthly. The index was first launched in 1997. The group's
manufacturing index has been done since the 1940s.
Gruß Dr. broemme
NEW YORK (Reuters) - A key barometer of the vast U.S. services economy registered growth for a second straight month in
December, according to a report issued on Friday, helping to solidify optimism the American economy may have already seen
the worst of the current recession.
The Institute for Supply Management, or ISM, an industry trade group,
said its monthly non-manufacturing index, which measures the services
sector of the economy, surged to 54.2 in December from 51.3 in
November, beating forecasts of a 49.7 reading. The index hit a four-year
low of 40.6 after the Sept. 11 attacks.
A reading above 50 indicates growth in the services sector, which includes
everything from transportation to legal and financial services. ISM's
manufacturing index, which measures less than one-fifth of overall
economic activity, has been mired below 50 for the past 17 months but
showed a strong rebound in new orders in December, spurring recovery
hopes.
``Overall in December, non-manufacturing industries experienced a
second month of growth in business activity following the dramatic drop-off of activity in October,'' said Ralph Kauffman, chair
of ISM's non-manufacturing survey committee, in a statement.
ISM, formerly the National Association of Purchasing Management, compiles its diffusion index by surveying about 370
purchasing executives in more than 60 different service industries monthly. The index was first launched in 1997. The group's
manufacturing index has been done since the 1940s.
Gruß Dr. broemme
