WASHINGTON (voa) – The U.S. services sector has grown for a second consecutive month in December, suggesting the U.S. economy may be beginning its recovery. The Institute for Supply Management says the non-manufacturing business index rose to 54.2 in December, its highest level in 2001. The index is a key indicator for the performance of the U.S. services sector and a figure above 50 means the sector is growing.
Meanwhile, U.S. unemployment rose to 5.8 percent in December, the highest level in almost seven years, as employers continued to lay off workers in response to the weak economy. But the number of layoffs (124,000) was significantly lower than in November (371,000) and October (448,000), suggesting the worst may be over for the labor market.
For 2001 as a whole, the U.S. economy lost 1.1 million jobs – or nearly two-percent of the workforce – the highest level in almost two decades.
December layoffs were higher in the transport and retail sectors, while jobs in the construction and service sectors rose.
Meanwhile in Europe, the unemployment rate remained unchanged at 8.5 percent in November among the 12 nations using the euro currency, while preliminary statistics indicate inflation slowed to two percent in December, from 2.1 percent the previous month. Analysts said the slowing inflation rate could give room for a further interest rate reduction by the European Central Bank in the coming months.
