Economics
First Factories, Now Services Signal Cracks in U.S. Economy
- ‘Shockingly weak’ gauges may make Fed rate hike tougher call
- Economists have been forecasting third-quarter GDP rebound
Services Signal Cracks in the U.S. Economy
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Some cracks could be starting to appear in the picture of an otherwise resilient U.S. economy.
An abrupt drop in the Institute for Supply Management’s services gauge on Tuesday to a six-year low is the latest in a string of unexpectedly weak data for August. Other less-than-stellar figures include an ISM factory survey showing a contraction in manufacturing; a cooling of hiring; automobile sales falling short of forecasts; and an index of consumer sentiment at a four-month low.