Service Sector Grows For First Time In 13 Months

October 6, 2009

The AP reports, "The US service sector grew in September for the first time in 13 months, an encouraging sign for the fledgling economic recovery, although jobs remain scarce." The Institute for Supply Management announced yesterday "that its service index hit 50.9 last month, up from 48.4 in August. Analysts polled by Thomson Reuters had expected a reading of 50." Bloomberg News adds, "US service industries expanded in September for the first time in a year as the emerging recovery spread from housing and factories to the broader economy," saying, "Federal Reserve efforts to unlock credit and government measures such as 'cash-for-clunkers' and a tax credit for first-time homebuyers are reviving demand and likely helped the economy grow last quarter."