Tuesday, December 6, 2011

November 2011 service sector cools, factory orders fall "UNEXPECTEDLY"

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12/5/11, "November service sector cools, factory orders fall," Reuters

"Growth in the U.S. service sector eased last month, and new orders for factory goods fell in October, tempering recent optimism that the U.S. economy may be poised for a more vigorous rebound.

The Institute for Supply Management said on Monday its services index fell unexpectedly to 52.0 last month from 52.9 the month before,

  • dragged lower by a decline in employment.

Although the headline number for the services index was at its weakest since January 2010, business activity and new orders both improved, showing the mixed nature of expansion that also was evident in the upbeat jobs report for November.

An ISM reading above 50 indicates expansion.

"The economy has improved, (but) it is still not growing very quickly," said Cary Leahey, managing director at Decision Economics in New York.

"This is the first disappointing indicator we've seen in the last couple of weeks.""...

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