On Thursday, US jobs and service sector data had strengthened views that the US Federal Reserve could begin to slow down its bond-buying program as soon as this month. However, the number of decreasing orders for factory goods had boost uncertainty of the economic outlook.
In almost eight years, the pace of US services sector growth had accelerated in August. This was according to a US industry report also showed last Thursday.
The Institute for Supply Management (ISM) said its services index had increased to 58.6, the highest since December 2005. The current services index was higher than the services index of 56 last July. The index showed that it beat economists' aggregate expectations for 55. It had also beaten the high-end forecasts.
In a note to clients written by Thomas Simons, money market economist at Jefferies & Co, he said, "Services represent approximately 85 percent of the economy, so the continued expansion of the sector is critical for the continuation of the overall economy recovery."
In addition, the number of private employers in the US had reached 176,000 last August. This means that the new jobless claims last week had decreased to a near five-year low.
Join the Conversation