US service sector activity had been down to a 19-month low in March, and private payrolls advanced less than anticipated, spotlighting a break of momentum in the economy which has been strongly supporting the US Central bank’s move to halt interest rate hike in a near-term outlook, perhaps until the end of the year.
Wednesday’s (April 3rd) report had kept the investors on their toes, although there had been some kind of modest data released earlier in the week, including retail sales data and factory activity. Following release of Wednesday’s (April 3rd) ISM data, investors remained worries of a steep slowdown dangling over the economic growth of first quarter with an axe in its hand.
According to Wednesday’s data, the Institute of Supply Management (ISM) said that its non-manufacturing activity had telescoped to 56.1 points having fallen by 3.6 percent, which accounts for about two-thirds of US economic activity, down to its lowest level since August 2017.
A figure above 50.0 remarks an expansion in the sector. Addressing to an acrolithic situation where solid growth seasons might have been well over, chief economist at Naroff Economic Advisors in Holland, Pennsylvania, Joel Naroff said, “The yin and yang of the numbers makes it clear that the year of tax-induced solid growth is over. But growth is still decent”.