News
Biggest Part Of US Economy Shows Slowdown
The biggest part of the US economy—the service industry—is showing signs of breaking down, shrinking this month for the first time in two years.
The Winter Storm Jonas saw the sector shudder to a halt, and Markit Economics' services index for February dropped to 49.8, its lowest level since the partial government shutdown in October 2013, Bloomberg reports.
On top of the snow, market turmoil, Fed rate hike speculation and the presidential election all weighed heavily on the service industry, says Chris Williamson, Markit’s chief economist.
The news comes as big players (including the Fed) peer into their crystal balls to predict a potential recession—a weak showing in the service industry certainly hints at one. [Bloomberg]
