ISM Services Index in U.S. Unexpectedly Decreased

Service industries in the U.S. grew in October at a slower pace than anticipated, a sign growing joblessness may restrain consumer spending.

The Institute for Supply Management’s index of non- manufacturing businesses fell to 50.6 from 50.9 in September, according to the Tempe, Arizona-based group. Another report showed companies continued to cut staff.

Mounting unemployment may mean consumer spending will only accelerate with government assistance, indicating the emerging recovery may lose momentum as stimulus fades. The lack of jobs makes it more likely Federal Reserve policy makers today will reiterate plans to keep their key interest rate near zero for an “extended period” to prevent a relapse.

Read Full Article from Bloomberg

- Posted: 2009-11-04 11:09:59

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