Service sector grows for the 4th consecutive month

[Omaha Steve]

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) — The U.S. services sector, where most Americans work, grew for a fourth straight month in September as the country continued to reopen following a spring shutdown.

The Institute for Supply Management reported Monday that its index of services activity rose to a reading of 57.8 last month, 0.9 percentage point higher than the August reading of 56.9. Any reading above 50 signifies expansion in services industries such as restaurants, department stores and delivery companies.

The index had fallen sharply for three months starting in March as shutdowns aimed at containing the virus closed many businesses and put millions of Americans out of work. But starting in June, the index resumed rising and now stands above its February level of 57.3.


Read more: https://apnews.com/article/business-us-news-d256e495c6fdd2c37c382b46e0e7d0a7

[BumRushDaShow]

1. I expect that the index is about to fall again

because I know around here, we have a lot of restaurants that are now closing for good. As we go into winter in the colder parts of the country and COVID-19 starts to spike again, these "indoor" locations are going to shut down again (see some locations in NYC that were announced for lockdowns again as an example).

If no stimulus is forthcoming, not only the people, but to the travel/hospitality industry, there will be more layoffs and closures, a phenomena that started accelerating this month (but obviously not included in the data just released which I believe reflects the status for last month).