Tariff 'paralysis' becomes further entrenched, jefferies says

Wednesday's release of the Institute for Supply Management's service index showed "more signs of a pause in activity rather than a steep contraction,'' said Thomas

Simons, chief U.S. economist Jefferies. "That being said, a broad pause is not a good thing, and the uncertainty that precipitated this pause has not shown any signs of lifting,"

he wrote in a note, adding "tariff paralysis" has become "further entrenched.'' A reading of 49.9%, as reflected in Wednesday's data, "reflects a

standstill in activity, the result of major difficulty in business planning in an environment of volatile trade, and tax policy," Simons said. "We are not seeing a contraction, but

it is difficult to see a path forward for stronger growth as well."