The United States service sector continued to grow in October, for the second consecutive month, though its pace eased a bit from September, according to a report released Wednesday.þþThe Institute for Supply Management’s services index was 50.6, compared to 50.9 in September. That was below economists’ median forecast for a rise to 51.5, but still above 50, which is the dividing line between growth and contraction.þþThe services sector represents about 80 percent of the nation’s economic activity, including businesses such as banks, airlines, hotels and restaurants. þþThe growth in the services sector came as a private firm reported that American companies reduced jobs in October at the slowest pace in more than a year, suggesting some stabilization in the labor market as the economy emerges from recession.þþThe report, from the private firm ADP Employer Services, showed that private employers in the United States shed 203,000 jobs in October, fewer than a revised 227,000 jobs lost in September.þþThe September fall was originally reported at 254,000.þþThe median of estimates from economists surveyed by Reuters for the ADP report, jointly developed with Macroeconomic Advisers, was a decline of 190,000 private-sector jobs last month.þþThe October private job loss was the smallest since July 2008.þþThe ADP figures are seen by some analysts as a proxy for the government’s closely watched report on nonfarm payrolls. Analysts polled recently by Reuters projected that United States payrolls most likely shrank by 175,000 in October, compared with a 263,000 decline in September.þþEconomists do not expect job growth to take place until 2010.þþStill, the pace of private job losses has slowed since the 736,000 drop in March, according to ADP data.þþEarlier, a separate report showed planned layoffs by American companies in October slowed for a third consecutive month to a 19-month low.þ
Source: NY Times
