US Service Growth Slowdown: Chris Balas's Perspective on the Consumer Confidence Crisis

According to Chris Balas from S&P Global Market Intelligence, the U.S. service economy continues to grow in January, but the growth momentum is slowing down. Chris Balas notes that although the manufacturing sector shows resilient performance, the annual growth rate of the service industry only reaches 1.7%—a significant decline compared to the expansion pace seen before the economic slowdown in December.

Consumer Service Demand Continues to Decline Drastically

Based on data from Jin10, Chris Balas observes that businesses focused on consumers are increasingly facing operational challenges. Demand for consumer services experienced a sharp decline in January, after nearly stagnating in December. This condition reflects very low consumer confidence, which is further pressured by rising living costs. Analysis by Chris Balas indicates that this sector is experiencing a serious contraction in real demand.

Financial and Business Sectors Show Signs of Weakening

Although financial service providers and professional businesses initially demonstrated relatively good resilience, Chris Balas warns that demand growth in these sectors is also beginning to wane. Growing concerns about economic prospects—often related to political environment uncertainties—have made business clients more cautious in their spending.

Inflationary Pressures Remain a Major Obstacle

According to Chris Balas, inflationary pressures in the service industry remain high, adding to the overall economic burden. The combination of slowing demand, declining consumer confidence, and inflationary cost pressures creates an increasingly complex economic environment for the U.S. service sector.