Posted on 03/04/2009 8:59:41 AM PST by SeekAndFind
NEW YORK (Reuters) - U.S. private companies hemorrhaged nearly 700,000 jobs in February and the service sector slump deepened as the year-old recession showed little sign of abating, according to data released on Wednesday.
The private sector cut 697,000 jobs versus 614,000 in January, according to an ADP Employer Services report that suggested hefty employment declines are on the way in the government's more comprehensive payrolls data on Friday.
The service sector's decline accelerated in February, according to the Institute for Supply Management, whose employment gauge also remained at a depressed level despite its improvement from the previous month.
"This is a slow "U"-shape recession," said Kurt Karl, chief U.S. economist at Swiss Re in New York. "We are still sinking. There is no sign of a bottom."
"On aggregate, the services sector is more pessimistic going forward and it is contracting a bit faster. It's going in the wrong direction."
The service sector represents about 80 percent of U.S. economic activity.
It often resists the grip of recession longer than other areas, but in February, accounted for more than half of the total private sector job losses reported by ADP, reflecting the rapid deterioration of the economy in recent months.
With financial markets now accustomed to dreadful economic data, stocks initially edged higher after the ISM services sector report, but quickly lost the momentum.
Government bonds, which usually perform better during times of economic weakness, initially added to their losses but then pared those back a bit.
NONE ESCAPE THE SWORD
The Institute for Supply Management said its non-manufacturing index -- which gauges the service sector -- came at 41.6 in February versus 42.9 in January.
The level of 50 separates expansion from contraction in the index, which dates back to July 1997. Economists expected a reading of 41.0.
(Excerpt) Read more at reuters.com ...
Change we can believe in.
Yes, but the private sector (capitalism) is the enemy of the administration....so, they don’t care. In fact, they’re too busy with public works projects handed out to their union thugs.
I can’t imagine why this is happening. Obama is making it more expensive to hire or continue employing workers, while his tax policies cut into the incentive to take business risks even when they work out profitably. Why aren’t more people hiring?
As for the cause of the economic slump.
Have you bought any product marked MADE IN AMERICA lately?
My new house a tent.
http://www.freerepublic.com/focus/chat/2136635/posts
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