Page 7 - atoday
P. 7
U.S. NEWS A7
Tuesday 6 October 2015
US Financial Front:
American services growth slows in September; orders soft
C. S. RUGABER Employees wipe down a car at a car wash in the Pacoimia section of Los Angeles. Growth in the said last week.
AP Economics Writer U.S. services sector slowed in September as sales fell and new orders plunged, the Institute for There are other signs the
WASHINGTON (AP) — Supply Management said Monday, Oct. 5, 2015, evidence that stock market volatility may have global growth slowdown
Growth in the U.S. services hit consumer confidence and limited spending. is taking a toll on the U.S.
sector slowed in Septem- economy. Hiring slowed
ber as sales fell and new (AP Photo/Richard Vogel) sharply in August and Sep-
orders plunged, evidence tember and employers
that stock market volatil- “That may bode well for which likely reflects a knee- care and education. added an average of just
ity may have hit consumer down the road.” jerk reaction to the drop While U.S. consumers have 167,000 jobs a month in the
confidence and limited Some companies that re- in stock prices,” said Ian been healthy, weak econ- July-September period.
spending. sponded to the survey, Shepherdson, chief econ- omies overseas and the That’s down from an aver-
The Institute for Supply however, said the stock omist at Pantheon Macro- strong dollar have ham- age of 231,000 in the previ-
Management said Mon- market’s recent declines economics. mered U.S. exports of man- ous three months.
day that its services index had damaged consumer The ISM is a trade group of ufactured goods. Factory The unemployment rate
fell to 56.9 last month from confidence and curtailed purchasing managers. Its growth has stumbled and stayed at 5.1 percent.
59 in August, which was sales. services survey covers busi- the Institute’s manufactur- Much of the weakness in
the second-highest read- “This is still a very high read- nesses that employ 90 per- ing index has been weak the jobs report was con-
ing in a decade. Any read- ing, despite the bigger- cent of workers, including all year. It dropped to just centrated outside the ser-
ing above 50 signals ex- than-expected decline, construction firms, health 50.2 in September, the ISM vice sector. Manufacturers
pansion. shed jobs for the second
A measure of sales fell to straight month, and min-
60.2, still a healthy reading, ing, which includes oil and
from 63.9. A gauge of new gas drilling, cut 10,000 jobs.
orders, however, dropped Services firms mostly did
nearly 7 points to 56.7. That better. Retailers added
suggests sales growth may nearly 24,000 jobs, and ho-
continue to cool in the tels and restaurants hired
coming months. at a healthy clip. But there
The survey still points to were some weak spots. Fi-
solid sales and growth for nancial services employ-
services firms, including re- ment didn’t change, and
tailers, hotels, banks and education and health
other financial services care hiring fell to half its re-
companies. More than 8 cent pace.
million Americans have Sharply lower exports will
found jobs in the past three likely slow growth in the
years, lifting their ability to July-September quarter to
spend on restaurant meals, as low as a 1.5 percent an-
clothes and vacations. nual pace, economists ex-
That pushed up the ISM pect. That would be down
services index in July and from a 3.9 percent rate in
August to the highest levels the second quarter.q
since 2005.
And in September, the Data hack at 7 Trump hotels confirmed
ISM’s measure of hiring
rose, indicating that com- NEW YORK (AP) — Custom- Hotel restaurants and gift New York, Trump Interna- and three of his children
panies actually added jobs er credit and debit card shops were also hacked. tional New York, Trump have executive roles.
at a faster pace. That sug- numbers may have been The hotel operator said an National Doral in Miami, Trump Hotel said it is work-
gests firms remain optimis- stolen at seven Trump ho- independent forensic in- Trump International Chi- ing with the U.S. Secret
tic about the economy. It tels after its payment sys- vestigation has not found cago, Trump International Service and the Federal
is also a sign that slower hir- tems were hacked for over any evidence of custom- Waikiki in Hawaii, Trump In- Bureau of Investigation to
ing in the past two months, a year. er’s information being mis- ternational Hotel and Tow- help “catch these criminals
according to government The Trump Hotel Collec- used. The company is of- er Las Vegas and Trump and prosecute them to the
data, may be temporary. tion said on its website that fering affected customers International Toronto. full extent of the law.”
“The companies still feel hackers gained access to a year of free identity theft Republican presidential Other luxury hotel chains,
confident and they are its systems between May protection. candidate Donald Trump such as the Mandarin Ori-
still hiring,” said Anthony 2014 and June 2015 at the The potential thefts oc- is chairman and president ental, have reported data
Nieves, chair of the ISM’s front desk of those hotels. curred at the Trump SoHo of Trump Hotel Collection breaches this year.q
services survey committee.
