U.S. service-sector growth accelerates
Slawek Cyran, with Corbex Construction, works on repairs to storm-damaged sections of the boardwalk at Jones Beach in Wantagh. A new index released Tuesday, March 5, 2013, indicates the service sector, which includes construction work, grew at the fastest pace in a year during February. (Feb. 28, 2013) Credit: Steve Pfost
U.S. service companies grew in February at the fastest pace in a year, buoyed by higher sales, more new orders and solid job growth. The gain suggests higher taxes have yet to slow consumer spending on services.
The Institute for Supply Management said Tuesday its index of nonmanufacturing activity rose to 56 in February from 55.2 in January. Any reading above 50 indicates expansion.
The report measures growth in industries that cover 90 percent of the workforce, including retail, construction, health care and financial services. A solid recovery in the housing market helped drive the index higher.
Service firms also kept adding jobs last month. A measure of service-sector hiring fell only slightly after reaching a nearly seven-year high in January.
"This survey does bode well for both activity and employment in the second quarter," Paul Dales, an economist at Capital Economics, said in a note to clients.
Thirteen of the 18 industries covered by the ISM survey reported expansion, including construction, real estate, finance and insurance, and utilities.
The growth suggests Americans are spending more despite an increase in Social Security taxes that took effect Jan. 1. The companies surveyed cover many industries closely tied to consumer spending, such as retail and restaurants. -- AP
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
