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Answer:

The United States service sector is currently expanding according to the Non-Manufacturing Index (NMI) found at ISM Report on Business and by analyzing recent US GDP and inflation rates. Per the report, the NMI is registered at 54 % in January 2014. With an NMI greater than 50% we can conclude NMI is expanding. A comparison of NMI over the last 12 months shows an average of 54.6% and a median of 54.5%, also confirming the assumption of expansion. Non-Manufacturing Business Activity Index shows a two percent increase since December and the New Orders Index increased half a percent indicating business expenditures are expanding. The Employment Index, another important economic indicator of growth, also increased year over year. In addition to these factors, the Supplier Deliveries Index indicated slower deliveries compared with December 2013. This is a normal trend during after- holiday period. Non-Manufacturing Inventories Index, Prices Index, Non-Manufacturing Inventory Sentiment Index have increased, further providing evidence of economic expansion. Even with all the positive indications of expansion, Backlog of Orders Index, Imports Index and New Export Orders Index demonstrated contraction. Now let’s talk about US GDP growth for the last few years: in 2012 GDP demonstrated 2.8 % increase, in 2013 GDP increased 1.9%. GDP is important factor which represents economy growth trend and should be considered along with inflation rates. Inflation has shown extremely slow growth during last years. I think data above is a valuable source of information and has straight correlation with US economy trend, so I can conclude that US economy is showing signs of slowly recovering from the financial crisis of 2008. According to Non-Manufacturing ISM Report On Business in January 2014 and analysis of recent US GDP and inflation rates , I assume…...