AIRLINK 189.64 Decreased By ▼ -7.01 (-3.56%)
BOP 10.09 Decreased By ▼ -0.05 (-0.49%)
CNERGY 6.68 Decreased By ▼ -0.01 (-0.15%)
FCCL 34.14 Increased By ▲ 1.12 (3.39%)
FFL 17.09 Increased By ▲ 0.44 (2.64%)
FLYNG 23.83 Increased By ▲ 1.38 (6.15%)
HUBC 126.05 Decreased By ▼ -1.24 (-0.97%)
HUMNL 13.79 Decreased By ▼ -0.11 (-0.79%)
KEL 4.77 Increased By ▲ 0.01 (0.21%)
KOSM 6.58 Increased By ▲ 0.21 (3.3%)
MLCF 43.28 Increased By ▲ 1.06 (2.51%)
OGDC 224.96 Increased By ▲ 11.93 (5.6%)
PACE 7.38 Increased By ▲ 0.37 (5.28%)
PAEL 41.74 Increased By ▲ 0.87 (2.13%)
PIAHCLA 17.19 Increased By ▲ 0.37 (2.2%)
PIBTL 8.41 Increased By ▲ 0.12 (1.45%)
POWER 9.05 Increased By ▲ 0.23 (2.61%)
PPL 193.09 Increased By ▲ 9.52 (5.19%)
PRL 37.34 Decreased By ▼ -0.93 (-2.43%)
PTC 24.02 Decreased By ▼ -0.05 (-0.21%)
SEARL 94.54 Decreased By ▼ -0.57 (-0.6%)
SILK 0.99 Decreased By ▼ -0.01 (-1%)
SSGC 39.93 Decreased By ▼ -0.38 (-0.94%)
SYM 17.77 Decreased By ▼ -0.44 (-2.42%)
TELE 8.66 Decreased By ▼ -0.07 (-0.8%)
TPLP 12.39 Increased By ▲ 0.18 (1.47%)
TRG 62.65 Decreased By ▼ -1.71 (-2.66%)
WAVESAPP 10.28 Decreased By ▼ -0.16 (-1.53%)
WTL 1.75 Decreased By ▼ -0.04 (-2.23%)
YOUW 3.97 Decreased By ▼ -0.03 (-0.75%)
BR100 11,814 Increased By 90.4 (0.77%)
BR30 36,234 Increased By 874.6 (2.47%)
KSE100 113,247 Increased By 609 (0.54%)
KSE30 35,712 Increased By 253.6 (0.72%)

Business activity in the vast US services sector picked up in March, beating expectations and pointing to solid momentum across most of the economy, a report showed on Wednesday.
Analysts said the survey supported the case for another interest rate increase by the Federal Reserve at its next meeting in May.
Another report on Wednesday showed consumers rushed to lock in home loans, an industry trade group said, with interest rates rising to a near four-year high.
The Institute for Supply Management's services index rose to 60.5 in March from 60.1 in February, as new orders improved and prices paid dropped. That was above Wall Street economists' forecasts for a decline to 59.
US Treasury debt prices were steady at higher levels, while the dollar pared losses after the report. Major US stock indexes erased gains to trade barely changed after weekly government oil inventory data sent crude prices higher. ID:nN05302928
The ISM report "suggests economic momentum remains strong and probably strengthens the Fed's resolve to tighten policy further in May," said Elisabeth Denison, economist at Dresdner Kleinwort Wasserstein.
"We still believe as we go through the second quarter we will see economic growth slow somewhat as the housing market continues to cool. But as of now, the indications are of continued strong momentum," she said.
The services sector makes up about 80 percent of US economy activity, including businesses like restaurants, hotels, hair salons, banks and airlines.
The survey's prices-paid index fell to 60.5 in March from 64.8 in February, while the jobs component fell to 54.6 from 58.2, and new orders rose to 59.5 from 56.2.
"The market was looking for confirmation that there might be a broad slowing of the economy under way, but the data did not reinforce that view," said Tony Crescenzi, chief bond market strategist at Miller Tabak Co.
"In fact, it suggested the slowdown seen in manufacturing was isolated to that sector alone." The services report did show a dip in employment in March, but the labour market is "tight in specialised areas that require some type of specialised training or experience," said Ralph Kauffman, chair of ISM's non-manufacturing services index.
The Federal Reserve is closely watching the low jobless rate, among other signals that the economy is close to full capacity, which could trigger inflationary pressures.
The central bank raised interest rates at its policy meeting last week to 4.75 percent, and economists expect yet another rate rise at the next gathering in May, which would mark the 16th straight increase in the current tightening campaign.
BEATING THE RATE RISE Separate figures on Wednesday from an industry trade group showed US mortgage applications rose for a second consecutive week.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity last week increased 7.2 percent to 612.8 from the previous week's 571.7.

Copyright Reuters, 2006

Comments

Comments are closed.