US service sector slows down for first time in decade

US service sector slows down for first time in decade
  • Clock-gray 20:09
  • calendar-gray 05 May 2020

The activity in the US service sector slowed down for the first time in a decade, thus backing some forecasts that the country's economy will have troubles rebounding from the recession caused by the coronavirus, APA reports citing Sputnik. 

The Institute for Supply Management said Tuesday as quoted by Reuters that its service-sector index fell to 41.8 last month, compared with a March reading of 52.5.

A reading below 50 shows that the service sector, where the majority of Americans work, is in a contraction. The last time, such a situation occurred back in 2009.

Last month, Rick Rieder, a chief investment officer of global fixed income at BlackRock, predicted that the economic impact from the coronavirus pandemic will be the largest ever felt in the United States.

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