The service sector of the U.S. economy surged in September as the underlying index hit an all-time high due to respondents' positive outlook on business and the current and future U.S. economy. The ISM Service Index hit 61.6 last month, the highest since the index was created in 2008, as it grew in September for the 104th consecutive month. The two key components of the report are new orders and employment, both of which increased during the month.
The labor market continues to strengthen as evidenced by the strong private payrolls report last month. ADP Private Payrolls rose by 230,000 in September, well above the 184,000 expected, while August was revised higher to 168,000 from 163,000. The service sector led the way with 184,000 jobs while the manufacturing sector added just 7,000, the lowest number in a year. "The labor market continues to impress," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Both the goods and services sectors soared. The professional and business services industry and construction served as key engines of growth."
In a surprising turn of events, the owners of the remaining assets of Toys R Us are looking to restart the iconic brand loved over the years by children and many adults over the years. The 70 year old retailer shut down in June, costing 31,000 jobs across the country. The details of when we may see stores reopen have not been announced. Hopefully, we will hear something before the holiday shopping season.