Business Briefs – June 5, 2018

Trustees Report Warns Medicare Finances Worsening

WASHINGTON (AP) — Medicare’s financial problems have gotten worse, and Social Security’s can’t be ignored forever. The government’s annual assessment is a sobering checkup on programs vital to the middle class. The report from program trustees says Medicare will become insolvent in 2026 — three years earlier than previously forecast. The report says Social Security will become insolvent in 2034 — no change from the projection last year.

World Bank: Global Economy Is Healthy But Growth Will Slow

WASHINGTON (AP) — The steadily expanding global economy should remain resilient, at least for a couple of years, the World Bank says. The anti-poverty agency predicts that global growth will decelerate slightly from a solid 3.1 percent this year to 3 percent next year and 2.9 percent in 2020.

What’s in Your 401(k)? For More Investors, Just 1 Fund

NEW YORK (AP) — More and more retirement savers have their entire 401(k) account in just a single mutual fund, and investment advisers are fine with it. Last year, for the first time, the majority of savers had their accounts invested in a single target-date retirement fund, out of the 4.6 million participants at 401(k) and similar programs that Vanguard keeps records for.

Services Firms Grew at Faster Pace in May

WASHINGTON (AP) – U.S. services firms expanded at a stronger pace in May compared to the prior month, as companies saw gains in business activity, new orders and employment.

The Institute for Supply Management said Tuesday that its services index rose to 58.6, from 56.8 in April. Any reading above 50 signals growth. The services sector has expanded for 100 consecutive months, or more than eight years.

The gains are consistent with an economy that has steadily been expanding for nine years without many of the excesses that could risk a downturn. The index dovetails with the May jobs report released last week by the government that showed employers added 223,000 jobs as the unemployment rate fell to 3.8 percent from 3.9 percent.

United Health Group Expects Jump In Global Growth

(Star Tribune) – UnitedHealth Group said its business selling insurance and providing health care in South America should generate about $11 billion in revenue this year, up by more than one-third compared with 2017.