Service sector expands at fastest pace in five years

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Submitted: Thu, 02/03/2011 - 3:23pm
Updated: Thu, 02/03/2011 - 4:16pm

WASHINGTON, DC (AP) — The US service sector, which employs nearly 90 percent of the work force, grew in January at the fastest pace in five years, a sign that hiring could pick up soon.

The Institute for Supply Management, a private trade group, says its index of service sector activity rose to 59.4 last month, up from December’s reading of 57.1. That’s the 14th straight month of growth. Any reading above 50 indicates expansion.

The report follows a strong reading on Monday from the institute’s manufacturing index for January, which rose to its highest level in nearly seven years.

The institute’s employment index rose to 54.5, the highest since May 2006. The employment indexes in the manufacturing and service sector indexes rose in January, a positive sign that hiring may be picking up.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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3 Comments on "Service sector expands at fastest pace in five years"

2015 years 8 months ago

Perhaps it has something to do with American workers wanting to work six hour days and get paid $50,000 a year for it with full benefits, life long pensions and lifelong health insurance. Granted, I know thats what it takes to survive in this country, but don’t complain about the US not producing goods. We have an incredible high quality of life in comparison to the countries that we buy products from, and the reason is that we are a service oriented nation. You can’t run a business, and make a good profit and pay american workers. The money just doesn’t work that way. It’s the price we pay for being such a great nation with such good conditions. I for one don’t care if my computer is made in North Carolina or Taiwan, as long as it works.

2015 years 8 months ago

The really sad part of this is that 90% of our jobs are in the service sector, which means we really produce very little of our own goods anymore. We simply handle what others provide to us.

2015 years 8 months ago

Trust me, they simply don’t appreciate economic reality.

Good post.