ECONOMY/JOBS: “A measure of service-sector activity across the U.S. picked up in January to reach a 10-year high, suggesting strong momentum in the sector powering the bulk of the U.S. economy beginning 2018.
The Institute for Supply Management Monday [2-5-18] said its index of nonmanufacturing activity—tracking industries including health care, finance, agriculture and construction—rose to 59.9 in January from 56 in December, the best index reading for records dating back to 2008.
This figure exceeded expectations of economists surveyed by The Wall Street Journal, who had forecast a January reading of 56.5. A number above 50 indicates expansion. The rise was driven by increases across a broad swath of components, including new orders and employment indexes. The new orders index rose to 62.7 in January from 54.5 in December. The employment index increased in January to 61.6, the highest level on record.
Anthony Nieves, chair of the ISM committee that oversees the survey, said he sees this strength in services continuing.
The rise in the new orders metric was propelled by a range of factors, including business confidence that tax reform will boost investment, Mr. Nieves said. January’s acceleration comes after two consecutive months of pullback in the services sector.”
-Sarah Chaney, “U.S. Service-Sector Activity Hits Decade-High,” The Wall Street Journal online, Feb. 5, 2018 11:40am