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U.S. Services Index Unexpectedly Increases In April
(RTTNews) - A report released by the Institute for Supply Management on Monday showed an unexpected increase by its reading on U.S. service sector activity in the month of April.
The ISM said its services PMI rose to 51.6 in April from 50.8 in March, with a reading above 50 indicating growth. Economists had expected the index to edge down to 50.6.
The unexpected uptick by the headline index partly reflected faster growth by new orders, as the new orders index climbed to 52.3 in April from 50.4 in March.
The employment index also jumped to 49.0 in April from 46.2 in March, although a reading below 50 still indicates contraction.
Meanwhile, the ISM said the business activity index slid to 53.7 in April from 55.9 in March but remained in expansion territory for the 59th consecutive month.
The report also said the prices index surged to 65.1 in April from 60.9 in March, reaching its highest reading since hitting 65.8 in January 2023.
"Regarding tariffs, respondents cited actual pricing impacts as concerns, more so than uncertainty and future pressures," said Steve Miller, Chair of the ISM Services Business Survey Committee.
He added, "Respondents continue to mention federal agency budget cuts as a drag on business, but overall, results are improving."
Last Thursday, the ISM released a separate report showing a slight decrease by its reading on U.S. manufacturing activity in the month of April.
The ISM said its manufacturing PMI edged down to 48.7 in April after slipping to 49.0 in March, with a reading below 50 indicating contraction. Economists had expected the index to dip to 48.0.
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