Private sector jobs growth in the U.S. slowed in last July, but the increase in the service industry to the highest level in the past decade shows the movement of the economy that is increasingly strengthened The Fed to raise rates this year.
Strong domestic fundamentals in other reports Wednesday yesterday showed an increase in the import of food products, automotive, industrial materials, and consumer products last June.
"This will be interpreted as very good news for The Fed and further growth will be seen as an affirmation to meet their growth targets regarding meetings.
At this stage, we still expect The Fed will raise interest rates at its meeting next September, "said Cheng Chen, economist with TD Securities in New York.
The Institute for Supply Management said its index of their services rises sharply to as low as 60.3 last month, the highest since August 2005, from 55 the previous June.
Trade with the level above 50 means expansion in the service sector, which accounts for more than one-third of the u.s. economy.
The index was lifted by rising 5.5% new orders, which also reached the highest level since August 2005. Measurements in industrial sector employment rises sharply 6.9 points to the highest point in the last decade.
There are 15 companies field service industries reporting expansion last month, while the mining industry and other visible contraction of production.
The ISM Survey, however, the sector's expansion seems to be excessive. Other survey company Mark it showed data from the service sector grew slowly last July.
Even so, the service sector helped release the economy from a downturn due to the weakness of the manufacturing sector. https://www.mql5.com/en/signals/120434#!tab=history
