U. S. Service Economy Grows at Slower Rate

U. S. Service Economy Grows at Slower Rate
The article begins by explaining how much of an impact the service sector has on the U.S. economy, accounting for two-thirds of it. There is also a possibility that the increase in gas prices are impacting growth in the service sector. The article points out the slower economy growth in May comparative to April. The article goes further to explain other changes that are taking place: such that energy costs are impacting transportation, banking and retailing. Ed Yardeni, a chief investment strategist argues that higher inflation or lower profits will not take place in the future because even though people are complaining currently, they?ve been maintaining.
I disagree with Yardeni?s view that businesses will be able to maintain, because currently that?s already untrue. He was using statistics from a specific population that has not yet been effected enough to create a change in their business. Therefore, I feel his statement is inaccurate. Clearly, people all around the world are being effected by the increase in fuel costs. The fact that the economic growth has slowed in one month shows evidence of what is to come. I feel that it is an ignorant view to state that people are not being effected, when in reality only a certain group of people are not being affected. I think this issue holds great significance for most people world wide. Furthermore it would be wise to predict what will happen and be prepared, rather than assuming the public will be able to maintain their income.
http://abcnews.go.com/Business/wireStory?id=2040752=