US services sector activity accelerated in August and private employers boosted hiring, suggesting the economy continued to grow at a moderate pace despite trade tensions which have stoked financial market fears of a recession.
The upbeat reports Thursday took some of the sting from data this week that showed the manufacturing sector contracted for the 1st time in August as the year-old trade dispute between the United States and China escalated.
The Institute for Supply Management said its non-manufacturing activity index increased to a reading of 56.4 in August from 53.7 in July. A reading above 50 indicates expansion in the sector, which accounts for more than 70%of US economic activity.
You cannot count the US consumer driven economy out yet, there is no recession in sight.
According to a Reuters survey of economists, NFPs probably increased by 158,000 jobs last month after rising by 164,000 in July. Job growth has slowed from an average of 223,000 per month in 2018.
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