SPVM - U.S. Services Sector Is Growing But Job Concerns Are Mounting
2024-03-05 12:45:00 ET
Summary
- The US ISM services index shows that business activity and new orders are performing well, but companies are increasingly focused on trimming their workforce with the employment component hinting at the risk of outright job losses in coming months.
- However, with inflation pressures looking less worrying, the Fed should have the flexibility to respond.
- With job loss announcements seemingly picking up and the quit rate falling, it does appear that the jobs market is cooling.
The US ISM services index for February paints a very mixed picture of the state of the biggest sector of the economy. The headline index was disappointing at 52.6 (versus 53.4 in January), coming in below the 53.0 consensus forecast, yet business activity and new orders improved nicely to 57.2 and 56.1, respectively, with both more than a full point higher than their six-month average, where a number above 50 represents expansion and anything below signals contraction....
U.S. Services Sector Is Growing, But Job Concerns Are Mounting