Bloomberg reports that:
Service industries expanded in May at the slowest pace in 13 months as orders eased, signaling tempered improvement in the biggest part of the U.S. economy.
The report further dampens the prospect for a strong recovery and the spirits of those who had been predicting it, more from hope than cold consideration of the data. Keeping hope alive were the economists surveyed by Bloomberg whose estimates:
… ranged from 55 to 60.
It declined, actually, to 55.7 from April’s 57.8. And this is especially troubling since:
Limited growth in orders reflects an American consumer who has been saving the extra cash from low gasoline prices and rising employment rather than spending it. Stronger household demand would help invigorate growth at service providers that make up almost 90 percent of the economy.
The economy’s moves toward real recovery is about as promising as Amtrak’s progress toward profitability.
And their dysfunction could be traced to the same source.
