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#Economic Report: Service side of U.S. economy speeds up in January, ISM finds, signals faster growth

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“#Economic Report: Service side of U.S. economy speeds up in January, ISM finds, signals faster growth”

ISM non-manufacturing index rises to 58.7 from 57.7

The numbers: The huge service side of the U.S. economy grew faster in January and companies added more workers, signaling better times ahead as the record surge in coronavirus cases receded.

A survey of top business leaders at non-manufacturing companies such as restaurants, hospitals and banks rose to 58.7% from a revised 57.7% in the prior month, the Institute for Supply Management said Wednesday.

Readings above 50% signals that businesses are expanding, and numbers above 55% are usually a sign of broad strength.

A similar ISM survey of manufacturers was also strong in January.

Big picture: The economy downshifted at the end of 2020 after a fresh onslaught from the coronavirus. Yet rising vaccinations, the lifting of business restrictions and the promise of more federal aid from Washington are giving companies a jump-start early in the new year.

Read: ADP says private-sector higher climbs in January

Market reaction: The Dow Jones Industrial Average
DJIA,
-0.11%
and S&P 500
SPX,
+0.23%
were mixed in early Wednesday trades.

Jeffry Bartash

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