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Services Are Making A Comeback Form the Dead in the US, As the Country Reopens

Posted Wednesday, May 27, 2020 by
Skerdian Meta • 1 min read

The service sector took a major hit from the coronavirus lock-down. Manufacturing was suffering last year due to the trade war between US and China and it fell deeper in contraction. But services plunged into an abyss in March and they fell even deeper in April, as the lock-down extended.

This turned out to be the biggest decline for services ever recorded. But, it seems like this sector is feeling a little better this month. It still remains in deep contraction as the numbers below show, but the contraction is not as severe as in April.

Service Sector Survey From the Dallas FED

Dallas FED services sector index -41.7 vs -83.9 prior
General business activity -41.7
Revenue index -28.1 vs -65.3 prior

It’s a better sign but still deeply negative. We know that we’re heading towards some kind of recovery, but the strength of it is the big question. Although, the US has still been mainly closed in May, so I think that in June we will see some even better numbers.

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