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Service Industries in U.S. Grow at Fastest Pace in a Year

Bloomberg (03/05/13) Michelle Jamrisko

Service industries in the U.S. grew in February at the fastest pace in a year as a recovery in housing echoed through the economy. The Institute for Supply Management says that its nonmanufacturing index unexpectedly rose from 55.2 in January to 56. Any reading above 50 signals growth in the industries comprising 90% of the U.S. economy. “The service sector is gaining some momentum,” says Jeffries LLC economist Tom Simons. “The labor market has been broadly improving. For services, there are some knock-on effects from gains in manufacturing as well.” Thirteen nonmanufacturing industries registered growth in February, while five reported that business contracted.