Hold Your Nose, The Economy Just Took Another Dive
In this booming economy which is so full of promise that we can hardly keep U.S. consumers from beating down the doors at the malls to buy the Holy Stuff ... more great news.
The service sector, where the burger flippers who used to sell you sub-prime mortgages or manufacture your American cars or something silly like that, took a dive.
Can you imagine, those U.S. workers who are trying to make the payments they took on while working a real job now can't buy the kids burgers and still keep the house, or the car or pay for insurance - silly me, I forgot you had to drop the insurance policy that now costs $1200 a month, hope those kids wash their hands and stay inside the house for you. Those consumers whose incomes go offshore can't get a massage now. They can't pay to have flowers delivered. They can't pay for the car wash 'n wax. Your service sector isn't making its way because the geniuses at the head of the corporations are saving money on labor. Funny thing, how they expect the wage deprived to continue buying at the same level as before.
This isn't funny, actually.
The U.S. service economy, feeling the drag of the slumping housing market, expanded at a slower pace in September than in August, a trade group said Wednesday.
The Institute for Supply Management's index gauging the health of non-manufacturing industries registered at 54.8 in September, down from 55.8 in August and below the 12-month high of 60.7 reached in June.
The index, now at its lowest point since March, was in line with economists' estimates. A reading above 50 indicates economic expansion in the service sector, while one below 50 indicates contraction.
The service sector makes up 80 percent of U.S. economic activity, and on Monday the ISM also reported weakening growth in the manufacturing sector.
With both of these portions of the economy losing steam, the Federal Reserve may feel more inclined to lower interest rates further.
These are the jobs that don't require education and training, it's that anxious looking older person who helps you take the groceries out - if you can still afford groceries. This service sector person may give your mom her drive downtown in the van that runs the elderly to the library or the dialysis. Your church flowers get delivered, by guess who? the service sector.
This is about 50% of the economy that's left since all the good jobs went byebye.
We're not in good economic health, you see. I was just giving the GoPerv line a little runby, to let you practice for the big lies they are going to have to tell you about the crisis they're going to have to run on, come 2008.
(This post also at http://cabdrollery.blogspot.com )