For the first time in almost five years the service sector contracted in January. The contraction appears strong enough to be of real concern. It was also way off the mark of Wall Street’s expected continued expansion. Overall, 14 of 17 service industries in the measurement index showed contraction.
The Street dropped more than 250 points this morning on the news; so far, and surprisingly, nobody has (yet) said, “We need another rate cut.”
More seriously, for people who still claim we’re not in the start of a recession, you m ight want to think again. The questions are still open as to length and depth, but the simple existence of one? Seems like that’s on the books.
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