U.S. Services Sector Shows Signs of Recovery
July 7, 2020
Service industries in the U.S. showed signs of recovery in June. Two surveys from purchasing managers show that the labor market in the sector is stabilizing and demand is returning as Americans return to regular life.
The services sector, which refers to industries that provide services rather than goods, such as healthcare, hospitality and technology services, accounts for two-thirds of total GDP. The sector was hard hit by the lockdown, shedding 17.4 million jobs in April, lead by hospitality and leisure companies.
An index that traces activity in the sector showed expansion in June, following two straight months of contraction. Despite the promising news, some analysts worry that the momentum gained in June could be undone as the virus’s surge in parts of the country keep consumers at home and governments reintroduce business restrictions.