LoginThough the harsh winter weather may have slowed down transportation for many parts of the U.S. over the past several months, it did not have the same effect on the service industry, which expanded further than it had been projected in January.
According to Bloomberg, the sector's non-manufacturing index reported by the Institute for Supply Management increased to 54, up from 53 in December. The news source states than any number above 50 indicates expansion within the industry. It was also the highest recorded number for the service sector since November 2010.
Bloomberg reported that this increase in employment within service positions is due to higher demand from households. As individuals continue to lower their debt and increase the amount of disposable income available, their demand for customer service rises. Anthony Nieves, chairman of the ISM services survey, told the source in a conference call that the industry has been resilient.
"We're chugging along pretty steady," Nieves said.
While car sales and manufacturing have seen a decrease in demand largely due to the cold weather, other service areas have seen increases, such as restaurants and real estate.