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Tue Feb 5, 2013, 07:05 PM

Service Industries Sustain Gain as U.S. Hiring Climbs

Source: Bloomberg

By Michelle Jamrisko - Feb 5, 2013
Service industries in the U.S. expanded in January at about the same pace as the prior month, driving demand for more workers and helping cushion the economy in the face of the Washington budget battle.

The Institute for Supply Management’s non-manufacturing index slipped to 55.2 from a 10-month high of 55.7 in December, the Tempe, Arizona-based group said today. Readings above 50 signal expansion. The group’s employment gauge was the strongest in seven years.

More jobs improve the odds that the recent pickup in consumer spending will be sustained as households deal with the two percentage-point increase in the payroll tax. The gain, coming just as lawmakers try to fashion a budget compromise, indicates companies such as MasterCard Inc. and PulteGroup Inc. (PHM) will keep benefiting from growing demand.

“We are starting to see more evidence of an improving labor market,” said Kevin Cummins, an economist at UBS Securities LLC in Stamford, Connecticut, who projected a reading of 55. “So far, it doesn’t seem the consumer has fallen off a cliff.”

Read more: http://www.bloomberg.com/news/2013-02-05/ism-services-gauge-in-u-s-fell-to-55-2-in-january-from-55-7.html



Alright 'doom and gloomers'...have at it and tear this report a 'new one'.

3 replies, 1082 views

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Reply Service Industries Sustain Gain as U.S. Hiring Climbs (Original post)
Purveyor Feb 2013 OP
jschurchin Feb 2013 #1
cstanleytech Feb 2013 #2
jschurchin Feb 2013 #3

Response to Purveyor (Original post)

Tue Feb 5, 2013, 07:50 PM

1. The only thing is.......

the vast majority of service industry jobs pay minimum or slightly above minimum wage with little if any benefits. Any job is better then none but don't confuse service industry employment with a living wage job. They are not interchangeable.

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Response to jschurchin (Reply #1)

Tue Feb 5, 2013, 07:56 PM

2. Plus alot of them arent full time hours either which leads to people struggling just to

pay for the basics and being unable to save anything.

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Response to cstanleytech (Reply #2)

Tue Feb 5, 2013, 08:06 PM

3. I agree

I worked in the service sector for a couple years. Although I made a living wage, I was a manager, almost everyone who worked with me made less than $10/hr.
You are absolutely right, there is nothing left for any type of savings.

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