Growth in the U.S. services sector braked in December and new orders
for manufactured goods fell for a fourth straight month in November,
signs the economy lost some momentum in the fourth quarter.
But with domestic demand picking up, against the backdrop of lower gasoline prices and firming wage growth, any slowdown in economic growth is likely to be temporary.
“The economy hardly ended the year with a bang, but only because the recent pace was not sustainable. It is easing only modestly,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pa.
The Institute for Supply Management said on Tuesday that its services index fell to 56.2 last month, the lowest reading since June, from 59.3 in November, which had left it just shy of revisiting its post-recession highs.
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Read more: U.S. services industry, factory data point to slower growth - The Globe and Mail
But with domestic demand picking up, against the backdrop of lower gasoline prices and firming wage growth, any slowdown in economic growth is likely to be temporary.
“The economy hardly ended the year with a bang, but only because the recent pace was not sustainable. It is easing only modestly,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pa.
The Institute for Supply Management said on Tuesday that its services index fell to 56.2 last month, the lowest reading since June, from 59.3 in November, which had left it just shy of revisiting its post-recession highs.
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Read more: U.S. services industry, factory data point to slower growth - The Globe and Mail
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