Services Growth Cooled Before U.S. Federal Shutdown: Economy – Bloomberg 10-03-13

Salient to Investors:

The ISM non-manufacturing index dropped to a 3-month low in September, below the lowest forecast in a Bloomberg survey of economists. Anthony Nieves at ISM said growth is continuing and manufacturing may very well pull services along.

Lindsey Piegza at Sterne Agee & Lynch said underlying momentum in the pipeline is insufficient to propel us beyond 2 percent growth range, as businesses are very hesitant to invest in additional employees.

Jenny Lin at Ford Motor said any type of disruption in government operations would adversely affect government spending, business and consumer confidence, and financial markets.

HIS said a partial federal shutdown will cost the US at least $300 million a day in lost economic output at the start.

Guy Berger at RBS Securities said a brief government shutdown sailing through the debt ceiling matters little, but a more realistic case is that the shutdown is a little longer.

Read the full article at  http://www.bloomberg.com/news/2013-10-03/services-growth-cooled-ahead-of-u-s-federal-shutdown-economy.html

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