Drop in US service sector activity raises economic concerns

“The downshift in the services sector, which accounts for more than two-thirds of U.S. economic activity, coincides with a U.S.-China trade war that has been squeezing American manufacturers” writes The Associated Press for The services sector has so far mainly weathered those pressures.In 2016, economists noted, consumer spending helped prevent the economy from slipping into a recession as a sharp drop in oil prices caused production across the manufacturing supply chain to plunge.Economic growth in recent months has been driven, even more than usual, by consumer spending as businesses have slowed their expansion and investment because of Trump’s trade conflicts.Sales, new orders and employment all weakened last month, and companies that were surveyed by ISM expressed concerns about tariffs.

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