A Silver Lining in a Cloudy Report
Granted an economic slide isn't good for anyone. But it does appear that computer services companies escaped the grip of a service sector contraction in January.
The Institute for Supply Management issued its January report on the service sector on Tuesday. When the institute's monthly index is above 50, it means growth in the service sector, which accounts for about two thirds of the economy. An index score below 50 is a contraction. The index for January was 44.6.
It was the first reading below 50 since December 2001, and the report helped trigger a 370-point slide in the Dow Industrial Average on Tuesday by feeding into stock traders' fears that we're in a recession.
The institute divides the service sector into 17 categories. Fourteen sectors contracted in January, three showed growth. Among those three, the category that would include many service-related channel partners -- "Professional, Scientific & Technical Services."
The report is available here.
Posted by Scott Bekker on February 05, 2008 at 11:57 AM