US Service Sector Slows Down For First Time in Decade
REUTERS / Yara NardiBusiness14:18 GMT 05.05.2020(updated 15:11 GMT 05.05.2020) Get short URLTopic: Nations Continue to Fight COVID-19 Crisis as Over 2.5 Million People Infected Globally
Last month, Rick Rieder, a chief investment officer of global fixed income at BlackRock, predicted that the economic impact from the coronavirus pandemic will be the largest ever felt in the United States.
Reuters reported on Tuesday that activity in the US service sector slowed down for the first time in a decade, thus backing some forecasts that the country’s economy will have troubles rebounding from the recession caused by the coronavirus.
The Institute for Supply Management said Tuesday as quoted by Reuters that its service-sector index fell to 41.8 last month, compared with a March reading of 52.5.
A reading below 50 shows that the service sector, where the majority of Americans work, is in a contraction. The last time, such a situation occurred back in 2009.