The US service sector growth held steady in August, according to a report released today.
The Institute for Supply Management's services index was unchanged in August at 55.8 from July, above forecasts for a drop to 54.8. A number above 50 indicates growth.
The services sector represents about 80% of U.S. economic activity, including businesses like restaurants, hotels, banks and airlines.
Last night the US Federal Reserve beige book survey of economic conditions showed last night that most regions of the US saw 'tighter lending standards for residential mortgages', which the report said were having a "noticeable effect on housing activity."
Several regions also reported that the tightening of credit conditions had spilled over into residential real estate (property).
But the beige book said that outside real estate there were only 'limited' reports of market turmoil affecting the economy.
'Outside of real estate (property), reports that the turmoil in financial markets had affected economic activity during the survey period were limited,' the Beige Book said.
The report, seen as key to the outlook of Federal Open Market Committee (FOMC) policymakers, suggested no panic at the central bank in the wake of financial market upheaval in response to concerns about credit drying up.
