Despite the recent upbeat news, the US economy isn't out of the woods just yet

Despite the recent upbeat news, the US economy isn't out of the woods just yet. According to today's economic data, the service sector in particular still has some work to do. The ISM Non-Manufacturing index dropped to 53 from 53.9 - the lowest reading since last June. Now, it's not all bad - any mark above 50 still shows growth. Nevertheless, economists projected a reading of 54.7. Meanwhile, the PMI service sector report confirmed the ISM data, dropping by 0.2 to 55.7. Once again, that's nothing to be overly concerned about, but it does suggest slow growth in services is something the economy must contend with. I'd be much more concerned if either of those numbers came in below 50. Yet, with the US economy heavily reliant on the services, growth is going to be key factor moving forward. (VIEW LINK)