US services sector posts weak growth
WASHINGTON • Service industries in the United States expanded in August at their weakest pace in six years, joining manufacturers in an abrupt slowdown that may signal waning optimism about the economy.
The Institute for Supply Management's non-manufacturing index slumped to 51.4, the lowest since February 2010, from 55.5 in July, the group's report showed yesterday.
While a reading above 50 indicates the industries that make up almost 90 per cent of the economy are expanding, the figure is lower than the most pessimistic projection. The services slowdown raises questions about the economy's strength ahead of the Federal Reserve's meeting later this month.
Possible lifeline for troubled Hanjin
SEOUL • South Korea said Hanjin Shipping will try to steer vessels to ports, including Singapore, to unload cargo as the government attempts to contain global supply-chain disruptions stemming from the container line's court receivership filing.
The company's owner will provide 100 billion won (S$123 million) as part of efforts to contain the disruptions, while South Korea's ruling Saenuri Party has asked the government to offer about 100 billion won of loans at a low interest rate to the shipping line if it provides collateral.
The news caused the company's shares to jump 29 per cent to 1,390 won in Seoul trading yesterday. The stock has plunged 65 per cent this year, cutting its market value to 315 billion won.