Service Industries in U.S. Sustained Pace of Growth in March

Source: Bloomberg

10:00 AM EDT
April 6, 2015

Service industries grew in March at about the same pace as a month earlier, indicating the biggest part of the U.S. economy is holding up.

The Institute for Supply Management’s non-manufacturing index cooled to 56.5 from the prior month’s 56.9, the Tempe, Arizona-based group said Monday. A gauge above 50 shows expansion and the March reading matched the median estimate in a Bloomberg survey of economists.

Orders accelerated in March and employment kept expanding, signaling growth will probably strengthen after a first-quarter pullback that took a toll on manufacturing. Consumers, who have had success finding jobs, are helping fuel sales at industries that account for almost 90 percent of the economy.

“The overall fundamentals for domestic demand are still good,” said Kevin Cummins, an economist for UBS Securities LLC in New York, who correctly projected the ISM reading. “We’re seeing income growth and job growth. The recovery should continue, and be led by the consumer.”

Read more: http://www.bloomberg.com/news/articles/2015-04-06/service-industries-in-u-s-sustained-pace-of-growth-in-march