Service sector remains strong despite inflation’s grip

By DAMIAN J. TROISE
AP Business Writer

NEW YORK (AP) — The largest part of the U.S. economy is holding up against the hottest inflation in four decades and the threat of a potential recession. Hotels, restaurants and other businesses that provide services have managed to keep gaining ground through the summer, according to the latest survey from the Institute for Supply Management. The sector has been expanding since May, and August’s gain was the biggest so far this year. Inflation remains Wall Street’s main concern as investors try to gauge how the Federal Reserve will continue its rate hikes in order to tame higher prices.