More Evidence That The US Economy Is Recovering
By Mark Perry on May 5, 2009 | More Posts By Mark Perry | Author's Website
WASHINGTON (AP) - A private measure of the U.S. services sector contracted for the seventh straight month in April but at a slower pace, the latest sign the economic downturn could be moderating. The services index from the Institute for Supply Management came in at 43.7 in April compared with 40.8 in March (see top chart above). Any reading below 50 indicates the service sector, where most Americans work, is contracting. Still, the reading was higher than economists expected and provides another sign the economy’s steep downturn could be bottoming out.
May 5 (Bloomberg) — Service industries in the U.S. contracted in April at the slowest pace in six months, signaling the economic slump is gradually abating. The Institute for Supply Management’s index of non-manufacturing businesses, which make up almost 90% of the economy, rose to 43.7, higher than forecast, from 40.8 the prior month, according to the Tempe, Arizona-based group. Readings below 50 signal contraction.
ISM — The seven industries reporting growth in April based on the NMI composite index - listed in order - are: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Retail Trade; Finance & Insurance; Utilities; Other Services; and Accommodation & Food Services.
MP: The bottom graphs shows the ISM indexes for new orders and business activity. Business activity for the service sector is the highest since October, and new orders are the highest since September.
Finally, the 8.2 point increase in new orders is the largest one-month increase in the history of the ISM index (back to 1997).
Has Gold Just Broken Out Of Its Trend Channel?
One Reason Why The US Dollar Might Rise
Ron Paul Thinks That Fed “Oversight Is Laughable”
S&P 500 Index Is Still Overvalued
This Small Oil Exploration Company Is Ripe For A Takeover… Here’s How To Profit
Bay Street Stocks Slip Slightly Again - Canadian Commentary - 1 day ago
Stocks Close Mostly Lower Amid Disappointing Quarterly Results - U.S. Commentary - 1 day ago
Bay Street Stocks Linger Slightly Below Unchanged Level - Canadian Commentary - 1 day ago
Stocks Remain Stuck In The Red In Mid-Afternoon Trading - U.S Commentary - 1 day ago
European Markets Fall, Led By Banks, Oils - European Commentary - 1 day ago





It appears that the decline is slowing. How does that justify the headline that the economy is recovering? Recovery may come but you showed no evidence of that happening yet.