Mixed economic data but services sector still expanding

Speculation on the possibility of an economic recession has increased in the last few months. The manufacturing sector has been contracting for the last four months and today's report of new orders for U.S. factory goods in December was the worst in a year.

 Manufacturing is reeling from the headwinds of a strong dollar, weak global demand and a sharp contraction in energy projects. However, this sector contributes less to the U.S. economy than the services sector. The consumer has been holding steady keeping spending especially on services chugging.

"Yesterday's ISM nonmanufacturing index report falling to 53.5 percent from 55.8 percent, the third consecutive month of decline, raised a few eyebrows. Services are still expanding but they are expanding at a slower rate and, as of now, recession is still unlikely", says Voya Global Perspectives.