U.S. manufacturing slowdown spreads to services: Kemp

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U.S. manufacturing slowdown spreads to services: Kemp
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The U.S. economy faces the greatest risk of outright recession for a decade as t...

LONDON - The U.S. economy faces the greatest risk of outright recession for a decade as the slowdown spreads from manufacturing to the much larger and more stable service sector.

The manufacturing downturn is now more widespread than either of the mid-cycle slowdowns in 2012 and 2015/16, according to the ISM survey . New orders have slowed from growth of more than 8% at the same point in 2018 and are now falling for the first time since 2015/16.Service sector output and employment tend to be much less cyclical and volatile than in manufacturing .

Unlike manufacturers, non-manufacturing firms continued to report growth last month, but it was not very widespread, and it has been trending consistently lower since the start of the year.

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