service sector

U.S. Service Economy Gets Rocked

I couldn't resist the drama. This headline is a reaction to all of the misleading headlines of the past week. The stock market is having trouble with this piece of news:

U.S. service industries unexpectedly contracted at a faster pace in July as concern over rising unemployment gripped consumers.

The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90 percent of the economy, fell to 46.4 from 47 in June, according to the Tempe, Arizona-based group. Fifty is the dividing line between expansion and contraction.