Service Sector Remained Strong In February, Soothing Investors For Now

Published Friday, March 3, 2023 at: 7:31 PM EST

A key measure of U.S. economic growth ticked lower by a scant one-tenth of 1% in February, indicating the economy is expanding despite the Federal Reserve raising lending rates eight times in the past year. But the good news may be bad because it raises doubt about how many more rate hikes will be required to tamp down growth enough to quash inflation without causing a recession. The index of activity in the service sector of the economy, which accounts for 89% of U.S. gross domestic product, dropped negligibly last month, according to data released Friday by the Institute of Supply...

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This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation.

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