Service-sector growth slows in April
Hotel maid Ereyda Yanez cleans a hotel bathroom at the Zen in Palo Alto, Calif. The U.S. service sector, which employs nearly 90 percent of the nation's work force, grew for the 17th straight month in April, though at the slowest pace since August. (April 1, 2011) Credit: AP Photo
The U.S. economy's service sector grew last month at the slowest pace since August, renewing concerns that more expensive gas and food may be weakening growth.
Service companies, which employ 90 percent of the nation's workforce, still expanded for the 17th straight month. But their growth slowed considerably because of a sharp drop in demand for their services, the Institute for Supply Management said Wednesday.
The private trade group of purchasing executives said its index of service-sector activity fell to 52.8 last month, down from 57.3 in March and a five-year high of 59.7 in February. Any reading over 50 indicates expansion. The group measures activity for a range of industries, including retail, health care, financial services and construction.
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Get ready for sun and fun with NewsdayTV's summer FunBook special! From celebrating America's 250th birthday to a new ride at Adventureland, NewsdayTV's Elisa DiStefano and Newsday lifestyle editor Meghan Giannotta have your inside look at Newsday's summer FunBook.
