Services sector spurs US economic growth

The number of Americans filing new claims for jobless benefits fell more than expected last week while activity in the services sector hit a six-month high in March, underscoring the economy’s solid fundamentals despite a recent softening in growth.

Harsh weather, the now-settled labour dispute at the country’s busy West Coast ports, softer global demand, and a strong dollar undercut growth early in the first quarter.

Yesterday’s upbeat reports, however, implied the slowdown would be temporary.