Posts Tagged ‘Institute for Supply Management’

Service Sector Shows Economic Contraction

Posted on: February 5th, 2008 by Kenneth Long No Comments

An early report by the Institute for Supply Management shows that the non-manufacturing (mostly service sector) index fell to 41.9 in January. Any reading below 50 is considered a contraction.

This is a huge variance from bullish economists that expected a 53 reading. It is also a clear sign that recession is ominous. Investors agreed, sending stock prices immediately tumbling. (more…)

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